What Is Commodification

question 84

Multiple Choice

What is commodification?

• A) the process of transforming all things into products that can be bought and sold
• B) the act of buying products that were previously unavailable
• C) the process of looking past the monetary worth of products and services to see their intrinsic value
• D) taking products from one country and exporting them across the world

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Definitions:

Flotation Cost

The total costs incurred by a company in offering its securities to the public, including underwriting, legal, and registration fees.

Target Capital Structure

The mix of debt, equity, and other financing sources a company aims to use to finance its operations and growth.

WACC

Weighted Average Cost of Capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.

Cost of Equity

Cost of equity is the return a company requires to decide if an investment meets capital return requirements and can be seen as the return on equity that shareholders expect for their investment risk.