In an Argument Relating to Fixing Prices for Goods, Nathan

question 4

Multiple Choice

In an argument relating to fixing prices for goods, Nathan, the sales manager of Expa Manufacturing In C., argues that the company will charge 25% more than its previous price because Leon Manufacturing, Expa Manufacturing's sister company, charges more for its goods.This scenario exemplifies _____.

• A)arguing from analogy 
• B)arguing from causation 
• C)arguing from sign 
• D)arguing from theory

---

Definitions:

Equity Financed

Refers to the method of raising capital for a business by selling ownership shares in the company, as opposed to incurring debt.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.

Equity Financed

The method of funding a business through selling shares of the company to investors, thus raising capital without incurring debt.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often used in calculating the weighted average cost of capital.