Lea and Mia Are Both 2 Years Old, and Both

question 159

Multiple Choice

Lea and Mia are both 2 years old, and both are developing at an average rate. What is their expected weight gain during early childhood?

• A) 1 to 2 kg per month
• B) less than 1 kg per year
• C) 2 to 3 kg per year
• D) 4 to 5 kg per year

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Definitions:

Cost of Equity

The rate of return that a company is expected to pay out to its shareholders for their investment in the company, factoring in the risk of the investment.

Cost of Preferred

This refers to the required return on investment for preferred stock, representing the cost to a company for issuing such stock.

Pretax Cost of Debt

The interest rate a company pays on its debts, before taking taxes into account.

Cost of Equity

This refers to the rate of return that a company is expected to offer investors to compensate for the risk of investing in its equity.