Which of the Following Will Directly Impact the Cost of Equity

question 29

Multiple Choice

Which of the following will directly impact the cost of equity?

• A) Expected growth rate in sales
• B) Expected future tax rates
• C) Stock price
• D) Profit margins

Understand the concept of price elasticity of supply.

Analyze the impacts of supply and demand elasticity on market equilibrium.

Determine the role of substitutes and complements in affecting demand.

Understand the implications of perfectly inelastic and perfectly elastic demand curves.

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Definitions:

Self-discipline

The ability to work systematically and progressively toward a goal until it is achieved.

Extinction

The weakening or decreasing of the frequency of undesirable behavior by removing the reward for such behavior.

Positive Reinforcement

A technique used in behavior psychology to increase the likelihood of a desirable behavior by rewarding it.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.