The Tip-Top Paving Co

question 37

Multiple Choice

The Tip-Top Paving Co. has an equity cost of capital of 16.97%. The debt to value ratio is .6,the tax rate is 34%,and the cost of debt is 11%. What is the cost of equity if Tip-Top was unlevered?

• A) 0.08%
• B) 3.06%
• C) 14.0%
• D) 16.97%
• E) None of these.

Grasp the basic elements of a legally binding contract.

Understand the various forms of intellectual property, including patents, copyrights, and trademarks.

Analyze the impact of bankruptcy on small businesses.

Recognize the significance of OSHA workplace standards.

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Definitions:

Behavioral Economists

Economic experts examining the role of psychological, emotional, cognitive, cultural, and social influences on the economic decision-making processes of individuals and institutions.

Ultimatum Game

A game in experimental economics where a proposer offers how to divide a sum of money with a responder, who can accept or reject the offer, where rejection means both get nothing.

Ultimatum Game

A game in experimental economics where two players decide on the division of a sum of money, with one proposing the split and the other accepting or rejecting it.

Dictator Game

An experimental game in economics that tests individuals' behavior towards altruism and fairness, where one player (the "dictator") decides how to split an endowment between themselves and another player.