The FTC Now Follows the "Modified" Gullible Consumer Standard,and It

question 63

True/False

The FTC now follows the "modified" gullible consumer standard,and it protects consumers from ads that mislead significant numbers of people.

---

Definitions:

WACC

The Weighted Average Cost of Capital (WACC) refers to the average rate of return a company is expected to pay to its security holders to finance its assets.

Debt Ratio

The debt ratio is a financial metric that measures the extent of a company’s leverage, calculated by dividing total liabilities by total assets.

Cost of Debt

The effective rate that a company pays on its current debt, included in capital structure calculations to assess overall cost of capital.

Cost of Equity

The return that investors expect for investing in a company's equity, representing the compensation for the risk taken.