Offering a Product for Sale in a Small Geographic Area

question 214

Multiple Choice

Offering a product for sale in a small geographic area to help evaluate potential market actions is called a(n)

• A)micro market.
• B)test market.
• C)experimental market.
• D)simulated market.
• E)trial market.

---

Definitions:

WACC

Weighted Average Cost of Capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.

Cost of Equity

Cost of equity is the return a company requires to decide if an investment meets capital return requirements and can be seen as the return on equity that shareholders expect for their investment risk.

Flotation Cost

The total costs incurred by a company in issuing new securities, including underwriting, legal, registration, and other expenses.

Cost of Capital

The rate of return a company must pay to its shareholders and debt holders, representing the cost of obtaining funds to finance its operations.