When Taxes Are Ignored,which of the Following Can Be Used

question 72

Multiple Choice

When taxes are ignored,which of the following can be used to calculate the weighted-average cost of capital?

• A) Ratio of expected operating income to book value of all securities
• B) The expected return on equity times the debt-equity ratio
• C) Ratio of expected operating income to market value of all securities
• D) The required return on equity plus the required return on debt

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Definitions:

Reality Principle

The recognition, characterizing ego functioning, that we cannot always express or satisfy our id impulses.

Psychodynamic

A method in psychology that prioritizes the thorough investigation of the mental processes driving human behavior, emotions, and feelings, and their association with experiences from early life.

Freud's

Pertaining to Sigmund Freud, the father of psychoanalysis, including his theories and methodologies.

Adler's

Pertaining to Alfred Adler's theories, focusing on the importance of feelings of inferiority and the drive for superiority in the development of personality.