The Weighted Average Cost of Capital Is Used as a Discount

question 99

Multiple Choice

The weighted average cost of capital is used as a discount rate because

• A) it is an indication of how much the firm is earning overall.
• B) as long as the cost of capital is earned, the common stock value of the firm will be maintained.
• C) it is comparable to the prevailing market interest rates.
• D) returns below the cost of capital will cover all fixed costs associated with capital and provide an excess return to shareholders.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

---

Definitions:

Cash Controls

Procedures and policies that are implemented to manage and safeguard a company's cash transactions.

Theft

The act of stealing; specifically, the unlawful taking of another's property with the intent to permanently deprive the owner of it.

Cash Account

A financial record that tracks all cash receipts and disbursements within a business or organization.

Collections

The process of pursuing and receiving payments owed to a business from its customers or debtors.