The After-Tax Average Cost of All the Long-Term Funds Used

question 12

Multiple Choice

The after-tax average cost of all the long-term funds used by a corporation equals ________.

• A) economic value added
• B) cost of goodwill
• C) interest cost of the capital
• D) weighted-average cost of capital

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Definitions:

Hiring Ability

The capacity or skill of a person or organization to identify, evaluate, and recruit suitable candidates for employment.

Confirmation Bias

The tendency to interpret, seek out, and create information that confirms one's preexisting beliefs or hypotheses.

Unintended Racism

Racial prejudice and discrimination that occur unintentionally, often as a result of implicit biases.

Representativeness Heuristic

Estimating the likelihood of events in terms of how well they seem to represent, or match, particular prototypes; may lead us to ignore other relevant information.