For a Certain Type of Fabric,the Average Number of Defects

question 144

Multiple Choice

For a certain type of fabric,the average number of defects in each square foot of fabric is 0.9.Find the probability that a randomly selected square foot of the fabric will contain more than one defect.

• A)0.5934
• B)0.2275
• C)0.6341
• D)0.7725
• E)0.1647

Understand the concept of the cost of capital and its importance in finance.

Calculate the cost of equity using different models (DCF, CAPM).

Identify and calculate the component cost of debt for WACC.

Calculate the weighted average cost of capital (WACC).

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Definitions:

Excludable

A characteristic of a good or service that allows owners or producers to prevent its use or consumption by others.

Rival

in the context of goods, refers to a type of good for which one person's use diminishes others' ability to use it.

Club Goods

Goods that are excludable but not rival in consumption

Private Goods

Products or services that are consumed by one individual and cannot be used simultaneously by others.