Which of the Following Is Not a Reason the Cost

question 36

Multiple Choice

Which of the following is not a reason the cost of debt can vary across countries

• A) differences in the risk-free rate.
• B) a high price/earnings multiple.
• C) differences in the risk premium.
• D) differences in demographics.

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Definitions:

Demand Schedule

A table or graph showing the quantity of a good or service that consumers are willing and able to purchase at various prices over a given period.

Marginal Utility

The extra pleasure a customer receives from using an additional unit of a product or service.

Consumer Surplus

The discrepancy between the amount consumers are prepared to pay for a product or service and the actual price they pay.

Utility

A measure of satisfaction, usefulness or value that a consumer receives from any good or service.