Express Voluntary Assumption of the Risk Is a Defense to an Action

question 24

True/False

Express voluntary assumption of the risk is a defense to an action based upon strict liability.

---

Definitions:

Weighted Average Cost of Capital (WACC)

A calculation of a firm's cost of capital where each category of capital is proportionately weighted, used to assess the average rate a company is expected to pay to its security holders.

Cost of Equity

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

Pre-Tax Cost of Debt

The rate of return that a company pays on its debt, before taking into account tax deductions.

Face Value

The nominal value printed on a bond or security which indicates its worth at maturity but does not necessarily reflect its market value.