When Conducting an Information Search, a Consumer May Use Various

question 179

Multiple Choice

When conducting an information search, a consumer may use various product-rating organizations, government agencies, and TV consumer programs known as

• A) relational sources.
• B) marketer-dominated sources.
• C) personal sources.
• D) public sources.
• E) stakeholder sources.

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Definitions:

M&M Proposition II

A theory in corporate finance that suggests a company's cost of equity capital is a linear function of its capital structure, under a no-tax scenario.

Interest Tax Shield

The savings in income tax that a company achieves through deducting its interest expense from its taxable income.

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital where each category of capital is proportionately weighted.