Which of the Following Was a Change Proposed by the Single

question 45

Multiple Choice

Which of the following was a change proposed by the Single European Act?

• A)Establish frontier controls among European Community countries
• B)Increase the resources required for complying with trade bureaucracy
• C)Place barriers to competition in the retail banking and insurance businesses
• D)Apply the principle of "mutual recognition" to product standards
• E)Reduce costs directly by not allowing lower-cost suppliers into national economies

---

Definitions:

WACC

The Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. It represents the minimum return that a company must earn on its existing asset base to satisfy its creditors, owners, and other providers of capital.

Component Cost

The cost associated with each separate element (debt, equity, etc.) that comprises the overall cost of capital for a firm.

Noncallable Bond

A type of bond that cannot be redeemed by the issuer before its maturity date, thus offering investors protection against early repayment risks.

Annual Coupon

The yearly interest payment made to bondholders, expressed as a percentage of the bond's face value.