Which of the Following Is Not One of the Characteristics

question 7

Multiple Choice

Which of the following is not one of the characteristics of people in the "original position?"

• A) They do not know their social status.
• B) They do not know what "justice" means.
• C) They do not know what their conception of the good is.
• D) They do not know how talented they are.

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Definitions:

Bond-Yield-Plus-Risk-Premium

A method of estimating the cost of equity by adding a risk premium to the observed yield of a company’s long-term debt.

WACC

An assessment of a firm's cost of capital, where each category of capital is proportionally weighted to calculate the average cost.

Marginal Costs

Marginal costs refer to the change in total cost that arises when the quantity produced is incremented by one unit.

Target Capital Structure

Target capital structure is the proportional combination of debt, equity, and other financing sources a company aims to maintain.