If Society Chose to Maximize Total Utility Rather Than Minimum

question 440

Multiple Choice

If society chose to maximize total utility rather than minimum utility,

• A)society would achieve perfect income equality.
• B)society would achieve the maximin objective.
• C)its justice would be more utilitarian than Rawlsian.
• D)its justice would be more Rawlsian than utilitarian.

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Definitions:

Cost of Capital

The rate of return a firm must earn on its investments to maintain its market value and attract funds.

DCF Approach

The Discounted Cash Flow approach, a valuation method used to estimate the value of an investment based on its future cash flows.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often calculated using the Capital Asset Pricing Model (CAPM).

WACC Calculation

The process of determining a company's Weighted Average Cost of Capital, incorporating the costs of equity, debt, and any other forms of financing.