Different Divisions with Differing Lines of Business Use Different Costs

question 55

Multiple Choice

Different divisions with differing lines of business use different costs of capital because their cost of equity is different and also because the ________ could be different.

• A) optimal volatility
• B) optimal current ratio
• C) optimal asset mix
• D) optimal debt-equity ratio

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any learning needed.

Conditioned Response

A learned reaction or behavior to a previously neutral stimulus that has become associated with a significant stimulus.

Novel Stimulus

A new or unfamiliar stimulus that has not been previously experienced by an organism, often used in experimental research to gauge response or attention.

Stimulant

A substance that increases physiological or nervous activity in the body.