Candidate X and Candidate Y Have a Debate

question 90

Multiple Choice

Candidate X and Candidate Y have a debate.X's advisers believe that one result of the debate is that Y will appear to the voters as further to the left than before.This is good news for X

• A) if Y was already left-of-center before the debate.
• B) if Y was right-of-center before the debate.
• C) no matter what Y's previous position was.
• D) under no circumstances.

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Definitions:

Cost of Capital

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

Use of Leverage

The practice of using borrowed money to increase the potential return of an investment, which also increases the risk of loss.

Diluting Existing Shares

A process where a company issues more shares, leading to a reduction in the ownership percentage of existing shareholders.

Public Utility

A company providing essential services such as water, electricity, and telecommunications to the public, often subject to government regulation.