Which of the Following Laws Has the Purpose of Protecting

question 27

Multiple Choice

Which of the following laws has the purpose of protecting competition?

• A)Lanham Act
• B)Federal Trade Commission Act
• C)Fair Trade Act
• D)Unfair Practices Act
• E)Sherman Antitrust Act

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Definitions:

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of potential investments by calculating the rate of return that makes the net present value of all cash flows equal to zero.

WACC

In calculating a firm’s capital costs, the Weighted Average Cost of Capital method considers the proportionate weights of different capital categories.

WACC

Weighted Average Cost of Capital; the average rate of return a company is expected to pay its shareholders for using their capital.

NPV

Net Present Value, a calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate.