Aaron Wants to Remember the Number of the Pizza Delivery

question 299

Multiple Choice

Aaron wants to remember the number of the pizza delivery service long enough to enter it into his telephone. If he rehearses it, Aaron will hold the number:

• A) for about 30 seconds in his short term memory.
• B) for about 10 minutes in his short term memory.
• C) for as long as it takes for the pizza to be delivered.
• D) until he needs it again.

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Definitions:

Target Capital Structure

The mix of debt, equity, and other financing sources a company aims to use to fund its operations and growth.

Market Risk Premium

The additional financial return an investor aims to achieve by having a risky market portfolio instead of investments that are risk-free.

WACC

Weighted Average Cost of Capital, a calculation of a firm's capital cost that weighs each category of capital (equity, debt) proportionately.

CGT

Capital Gains Tax, a tax on the profit realized on the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale.