Assume You Are Vacationing by a Small Lake, Where You

question 22

Multiple Choice

Assume you are vacationing by a small lake, where you intend to do some fishing. a.When you arrive at this lake, you notice a slight sulfur smell.
Which phase of cultural eutrophication does this sulfur smell indicate?

• A)An algal bloom.
• B)Anaerobic bacteria are decomposing the aerobic organisms.
• C)Aerobic bacteria are decomposing the algae.
• D)Fish have died from lack of oxygen.
• E)None of these answers.

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Definitions:

Free Cash Flow

The amount of cash generated by a company after accounting for capital expenditures, necessary to maintain or expand the asset base.

Market Capitalization Rate

A rate used to evaluate the valuation of an investment market, typically calculated as the total market cap of all companies in the market divided by the market's total earnings.

Per Share FCFE

The amount of free cash flow to equity (FCFE) available to shareholders divided by the number of outstanding shares.

Required Rate of Return

The minimum expected return by an investor for investing in a risky asset, considering the risk involved.