Katie Owns 100 Shares of ABC Stock

question 39

Multiple Choice

Katie owns 100 shares of ABC stock.Which one of the following terms is used to refer to the return that Katie and the other shareholders require on their investment in ABC?

• A)Weighted average cost of capital
• B)Pure play cost
• C)Cost of equity
• D)Subjective cost
• E)Cost of debt

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Definitions:

Separation of Classes

The division of society into distinct social classes, characterized by differences in wealth, occupation, and social status, which can lead to inequality and limited social mobility.

Individualism

A social and political philosophy that emphasizes the moral worth of the individual and the importance of individual autonomy and self-reliance.