The Period of Life When One Is Generally Healthy and Free

question 73

Multiple Choice

The period of life when one is generally healthy and free from chronic or serious disease is called

• A)health expectancy span.
• B)life span.
• C)health span.
• D)morbidity span.

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Definitions:

After-Tax Cost of Debt

The net cost of debt after accounting for the effects of taxes, reflecting the actual cost to a company.

Cost of Equity

The theoretical compensation paid by a company to its equity investors, or shareholders, for the risk involved in investing their capital.

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay to all its security holders to finance its assets.

WACC

Weighted Average Cost of Capital; a formula used to calculate a business's cost of capital, where every type of capital is weighted according to its proportion.