Write the Compound Statement in Words $\mathrm { r } =$

question 54

Multiple Choice

Write the compound statement in words.
-Let $\mathrm { r } =$ "The puppy is trained."
$\mathrm { p } =$ "The puppy behaves well."
$q =$ "His owners are happy."
$r \rightarrow ( p \wedge q )$

• A) If the puppy is trained, then the puppy behaves well and his owners are happy.
• B) If the puppy is trained and the puppy behaves well, then his owners are happy.
• C) The puppy is trained and the puppy behaves well if his owners are happy.
• D) The puppy is trained, the puppy behaves well, and his owners are happy.

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Definitions:

M&M Proposition II

A theory in corporate finance that asserts the cost of equity is a linear function of the company's debt/equity ratio, under the assumption of no taxes and financial distress costs.

Cost of Equity Capital

The return required by equity investors as compensation for their investment risk.

WACC

Weighted Average Cost of Capital, a measure of the average rate of return a company is expected to pay its securities holders to finance its assets.