Many Species of Animals Are Common Resources and Many Must

question 143

Multiple Choice

Many species of animals are common resources and many must be protected by law to keep them from extinction.Why is the cow not one of these endangered species, even though there is such a high demand for beef?

• A)cows reproduce at a high rate and have adapted well to their environment
• B)public policies have been implemented to protect cows from predators and diseases
• C)cows are privately owned and many endangered species are owned by no-one
• D)there is a natural ecological balance between the birth rate of cows and human consumption

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Definitions:

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, usually on an annual basis.

Optimal Capital Structure

The ideal mix of debt and equity financing that minimizes a company's cost of capital and maximizes its value and stock price.

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital that weighs each category of capital proportionately.

EPS

EPS stands for Earnings Per Share, a key financial indicator that divides net earnings available to shareholders by the average outstanding shares, illustrating the company's profit on a per-share basis.