It Is Recommended That the Factors Extracted Should Account for at Least

question 61

Multiple Choice

It is recommended that the factors extracted should account for at least _____% of the total variance of the original set of variables.

• A) 50
• B) 60
• C) 70
• D) 80
• E) 90

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Definitions:

WACC

Weighted Average Cost of Capital; a calculated average of the cost of equity and the cost of debt that a company uses to finance its operations, weighted based on the proportion of each finance source in the company's capital structure.

Capital Structure

Capital structure is the mixture of debt and equity that a company uses to finance its operations and growth.

Coupon Rate

The yearly percentage yield from a bond, measured against its nominal value.

Market Price

The current price at which a service or asset can be bought or sold in the market.