Use of the Marginal Cost of Capital

question 53

Multiple Choice

Use of the marginal cost of capital:

• A) acknowledges that when retained earnings is used up as a source of equity the cost of capital decreases as new common stock is sold to support more growth.
• B) recognizes that the return from the last dollar of funds generated should be less than the cost of the last dollar of funds raised.
• C) is highly dependent on the investment opportunities available to the firm.
• D) is the cost of borrowing privately.

Recognize the importance and functionality of data types in database management.

Understand the concept and structure of tables, records, and fields in a database.

Familiarize with the tools and wizards available for database manipulation including query creation.

Comprehend the procedure and significance of database creation and initial setup.

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Definitions:

Price Ratio

The relative price of one good or service compared to another, often indicating how many units of one good can be exchanged for one unit of another.

Price

The monetary value anticipated, needed, or dispensed for acquiring something.

Utility Increases

A situation where the satisfaction or benefit derived from consuming goods or services rises.

Diminishing Marginal Utility

The principle that as more of a good or service is consumed, the additional satisfaction or utility gained from consuming an additional unit decreases.