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Beth, a middle manager at Heather's Handbags, uses threats and punishments as ways of influencing the behavior of his subordinates. Which of the following sources of power is Beth relying on?
Industry Groups
Categories of related businesses that produce or sell similar products or services and share similar market characteristics.
Optimal Capital Structure
The best mix of debt, preferred stock, and common equity that maximizes a company's stock price by balancing the costs and benefits of financing.
Weighted Average Cost of Capital
Weighted Average Cost of Capital (WACC) is a calculation of a company's cost of capital in which each category of capital is proportionately weighted.
Tax Shield
The reduction in income taxes that results from taking an allowable deduction from taxable income, such as interest on debt.
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