Utilitarianism (In All Its Forms)requires That in Our Actions We

question 21

Multiple Choice

Utilitarianism (in all its forms) requires that in our actions we always try to maximize utility,everyone considered.This requirement has given rise to:

• A)ethical egoism.
• B)the "no-rest problem."
• C)the maximization problem.
• D)the golden-rule problem.

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Definitions:

M&M Proposition II

A firm’s cost of equity capital is a positive linear function of its capital structure.

Cost of Capital

The cost of funds used for financing a business, typically considered as the weighted average of the costs of equity and debt financing.

Tax Rate

The amount of tax a person or company must pay, expressed as a percentage of income.