A Salesclerk at L

question 242

Multiple Choice

A salesclerk at L. L. Bean uses ________ when he asks a customer if she also needs a pair of hiking socks with the purchase of her mountaineering boots.

Definitions:

Weight of Debt

A component of a firm's capital structure that quantifies the proportion of total capital represented by debt.

Weighted Average Cost of Capital

A calculation of a company's cost of capital in which each category of capital is proportionately weighted, used to evaluate the cost of funding projects.

Bond Issue

The process by which a company or government raises funds by selling bonds to investors, which then are obliged to pay back with interest.

Cost of Equity

The return a company theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake by investing their capital.