Favorable Conditions in the Marketplace Environment That Could Produce Business

question 38

Multiple Choice

Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called

• A)strengths.
• B)market strategies.
• C)market niches.
• D)threats.
• E)opportunities.

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Definitions:

Cost of Equity

The return a company theoretically pays to its equity investors to compensate them for the risk of investing in the company's stock.

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Calculating WACC

Determining the Weighted Average Cost of Capital, a measure of a firm's cost of capital in which each category of capital is proportionately weighted.

Weights

In finance, weights often refer to the proportion of each component of a portfolio or fund, typically expressed as a percentage of the total.