In Its 2007 Revision of the Ownership Rules,the FCC

question 21

Multiple Choice

In its 2007 revision of the ownership rules,the FCC:

• A)dropped all print-broadcast cross-ownership restrictions.
• B)dropped the cross-ownership restrictions only in small markets.
• C)dropped the cross-ownership restrictions in the 20 largest markets under some circumstances.
• D)banned television duopolies.
• E)authorized one company to own four television stations instead of two in the largest markets.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, affecting its liquidity.

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Discounted Cash Flow Analysis

A financial model used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.

Average Cost of Capital

A company's average cost of funds (both debt and equity), representing the return that investors expect for providing capital.