Studies of the Major Developed Countries Show That When Businesses

question 137

Multiple Choice

Studies of the major developed countries show that when businesses go looking for funds to finance their activities they usually obtain these funds from

• A)government agencies.
• B)equities markets.
• C)financial intermediaries.
• D)bond markets.

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Definitions:

After-Tax Discount Rate

The rate used to discount future cash flows to their present value, adjusted for the impact of taxes.

Income Tax Rate

The percentage of taxable income that individuals or corporations are required to pay to the government.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency.

Straight-Line Depreciation

A way of allocating the financial burden of a material asset over its effective lifespan in identical yearly portions.