In the US, Native Americans Make Up a Small Portion of the of the Total

question 30

Multiple Choice

In the U.S., Native Americans make up a small portion of the total population and lack the level of power and privilege enjoyed by whites. As such, Native Americans are a:

• A) Majority Group
• B) Dominant Group
• C) Minority Group
• D) Hate Group

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Definitions:

Target Capital Structure

The relative amount of debt, preferred stock, and common equity that the firm desires. The weighted average cost of capital should be based on these target weights.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, a crucial part of capital budgeting and often calculated using models like CAPM.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. It represents the average rate that a company is expected to pay to finance its assets.

Cost of Debt

The effective rate that a company pays on its borrowed funds from financial institutions and other sources.