Which of the Following DOES NOT Describe a Less Developed

question 37

Multiple Choice

Which of the following DOES NOT describe a less developed country?

• A)Countries where hunger, illiteracy, and poverty are common.
• B)Countries such as Mali, Bangladesh, and Ethiopia where the economies of the nation are primarily agriculturally based.
• C)Countries with low levels of industrialization, very high rates of population growth, very high infant mortality rates, and very low per person incomes.
• D)Countries with abundant capital for investment but with limited unskilled labor.

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate that a company is expected to pay on its securities, taking into account debt and equity.

Target Capital Structure

The mix of debt, equity, and other securities that a company aims to hold in order to finance its assets and operations ideally.

Flotation Costs

Expenses associated with issuing new securities, including legal, underwriting, and registration fees.

Effective Tax Rate

The average percentage of one's total income paid in taxes, factoring in all deductions and credits.