An ER Diagram That Contains Two Entities Involved in Two

question 55

Multiple Choice

An ER diagram that contains two entities involved in two separate M:N relationships will be mapped as how many relations?

• A)1
• B)2
• C)3
• D)4

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Definitions:

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity, indicating the proportion of debt used in financing its assets.

After-Tax Cost of Debt

The net cost to a company for borrowing funds, calculated by subtracting the tax benefits of interest expenses from the total interest paid.

Cost of Equity

The Cost of Equity is the return a company requires to decide if an investment meets capital return requirements and is often used in financial analysis and valuing companies.

Weighted Average Cost of Capital (WACC)

A computation of an enterprise's cost of capital, with each capital category assigned a proportional weight.