Vignette #2 Bob Is Committed to Losing Weight but Knows

question 83

Multiple Choice

Vignette #2 Bob is committed to losing weight but knows little about nutrition. He has heard his friends discussing types of fat, such as saturated and unsaturated, but has no idea what the terms mean or how they relate to his health and diet. He also has read that the most important improvement a person can make in his or her diet is to eat less cholesterol. Let's answer these questions and help Bob understand this topic better. To lose weight, Bob knows he needs to take in fewer calories. Which of the following is correct regarding lipids and body weight?

• A) Saturated fats have more calories per gram than unsaturated fats.
• B) When saturated fat is heated and melts, it loses calories.
• C) When excess monounsaturated fat is eaten it is stored as fat around the waist only.
• D) Both saturated and unsaturated fats have 9 calories per gram.

Distinguish which component costs are expressed on an after-tax basis in the calculation of a firm's cost of capital.

Describe the considerations in calculating the Weighted Average Cost of Capital (WACC) for new capital budgeting projects.

Explain the impact of flotation costs and other factors on the cost of new equity.

Recognize the differences between the cost of capital components and the returns paid to investors in the underlying securities.

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Definitions:

Retailer

A business or person that sells goods to the consumer, as opposed to a wholesaler or supplier, who normally sell their goods to another business.

Customer Convenience

The ease with which a customer can purchase and use a product or service.

Marketing Channel

The path or route through which goods move from the producer to the consumer, including intermediaries like distributors and retailers.

Five Second Rule

A popular, albeit scientifically unsupported, belief that food dropped on the ground will not become contaminated with bacteria if picked up within five seconds.