It Is ________ That Determines the Cost of Capital

question 69

Multiple Choice

It is ________ that determines the cost of capital.

• A) diversifiable risk
• B) non-systematic risk
• C) market risk
• D) total risk

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Definitions:

Porter's Model

A strategic tool developed by Michael E. Porter used to analyze the competitive environment of an industry, including five forces: the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and competitive rivalry.

Generic Competitive Strategies

Generic Competitive Strategies are basic approaches developed by Michael Porter for businesses to gain competitive advantage, including cost leadership, differentiation, and focus strategies.

Cost Synergies

The financial savings achieved by combining two or more entities, processes, or systems, leading to lower costs than if operated separately.

Human Imagination

The ability of the mind to be creative, innovate, and conceive of scenarios beyond current reality.