Refer to the Accompanying Figure

question 32

Multiple Choice

Refer to the accompanying figure. For Pat, the opportunity cost of planting one bulb is removing:  
    

• A)20 bags of trash.
• B)5 bags of trash.
• C)1/20 of a bag of trash.
• D)1/5 of a bag of trash.

---

Definitions:

Corporate Takeover

The acquisition of one company by another, through either direct purchase or by acquiring a majority stake in the target company’s equity.

P/E Ratio

The price-to-earnings ratio, a measure of a company's current share price relative to its per-share earnings.

Debt-equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its shareholder equity, indicating how much debt is used to finance assets.

Book Value

The net value of a company's assets minus its liabilities, often used to estimate the value of a company if it were to be liquidated.