Which of the Following Statements Is Correct

question 88

Multiple Choice

Which of the following statements is correct?

• A) The weighted average cost of capital is calculated on a before-tax basis.
• B) An increase in the market risk premium is likely to increase the weighted average cost of capital.
• C) The weights of debt and equity should be based on the balance sheet because this is the most accurate assessment of the valuation.
• D) All of the statements are correct.

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Definitions:

Population Size

The total number of individuals or inhabitants in a specified area or group.

Emigration

Or out-migration, is the outflow of people from one country and their settlement in one or more other countries.

Immigration

Or in-migration, is the inflow of people into one country from one or more other countries and their settlement in the destination country.

Overpopulation

A condition where the number of individuals exceeds the carrying capacity of their habitat, leading to environmental and social issues.