Fred Is a 45-Year-Old Man

question 22

Multiple Choice

Fred is a 45-year-old man. He has an analog television without a satellite connection. His savings are low. Therefore, he does not wish to switch to a digital television until the old one breaks down. Which of the following adopter categories best describes Fred?

• A) Innovators
• B) Early adopters
• C) Laggards
• D) The early majority

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Definitions:

Capital Structure

Refers to the mix of debt and equity financing a company uses to fund its operations and growth.

WACC

The Weighted Average Cost of Capital, a calculation of a firm's cost of capital that weighs each category of capital proportionately.

After Taxes

The net amount remaining following the deduction of all applicable taxes, often used to assess the true profitability of a business activity or investment after federal, state, and other taxes have been considered.

Beta Coefficient

A gauge for assessing the risk or fluctuation level of a security or portfolio in relation to the entire market.