The Reason the Hypodermis Acts as a Shock Absorber Is

question 44

Multiple Choice

The reason the hypodermis acts as a shock absorber is that ________.

• A) it is located just below the epidermis and protects the dermis from shock
• B) it has no delicate nerve endings and can therefore absorb more shock
• C) the major part of its makeup is adipose, which serves as an effective shock absorber
• D) the cells that make up the hypodermis secrete a protective mucus

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Definitions:

Required Rate of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

M&M Proposition II

Part of the Modigliani-Miller theorem stating that a company's cost of equity increases as its level of debt increases, due to the higher risk of default.

Cost of Equity

The return that investors expect for investing in a company's equity, reflecting the risk of owning equity in the company.

Interest Tax Shield

The tax saving attained by a firm from interest expense.