Comparing the US to Other Countries Ranked by Inequality

question 73

Multiple Choice

Comparing the US to other countries ranked by inequality,

• A)the US has a less equal distribution of income than some countries, but a more equal distribution of income than others.
• B)the US has one of the most equal distributions of income.
• C)the US has one of the least equal distributions of income.
• D)the US has a more equal distribution of income than other economically advanced countries such as Japan, Germany, and France.

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Definitions:

Cost Of Equity

The return that equity investors require on their investment in the firm.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Subjective Approach

An approach to making decisions or assessments that relies on individual preferences, emotions, or thoughts, instead of objective data or proof.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, representing the average cost of funding from all sources.