"Conditionality" in Foreign Aid Refers to

question 35

Multiple Choice

"Conditionality" in foreign aid refers to

• A) the level of poverty that must be present for a country to be eligible to receive aid.
• B) the terms of repayment of the loan.
• C) demands that aid recipients must meet in order to receive assistance.
• D) both A and C above.
• E) All of the above refer to conditionality in foreign aid.

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Definitions:

WACC

WACC stands for Weighted Average Cost of Capital, a calculation used to assess the average cost of a company's financing sources including equity, debt, and other securities.

Optimal Capital Structure

The best mix of debt, equity, and other financings that maximizes a company's market value while minimizing its cost of capital.

Discount Rate

The rate of interest utilized to calculate the current value of future cash flows within discounted cash flow analysis.

Cost of Capital

A company's expense for acquiring funds and capital, calculated as a weighted average of debt and equity costs.