Erbia,a Small Developing Country,needs Funds to Develop Their Communication Networks

question 10

Multiple Choice

Erbia,a small developing country,needs funds to develop their communication networks.Erbia is likely to approach _____ for assistance.

• A)the World Bank
• B)the International Monetary Fund (IMF)
• C)the United Nations Children's Fund (UNICEF)
• D)the World Health Organization (WHO)
• E)the World Trade Organization (WTO)

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation of a firm's capital cost that weighs each category of capital (equity, debt) proportionately.

CGT

Capital Gains Tax, a tax on the profit realized on the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale.

Selling New Common Stock

The process whereby a company issues and sells additional shares of its common stock to investors to raise capital.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and it can also be viewed as the risk-free rate of return plus a risk premium.