Use the Following to Answer the Questions

question 50

Multiple Choice

Use the following to answer the Questions
A distribution of voters is uniform over [0, 1]. Candidates A and B have already entered the election and have chosen positions at 1/4 and 3/4, respectively.
-If C enters at 1/2, who wins the election?

• A) A
• B) B
• C) C
• D) A and B tie.

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Definitions:

EBIT

Earnings Before Interest and Taxes represent a company's profit before deducting expenses from interest and income taxes.

Sales Increase

An uptick in the amount of products or services sold by a company, typically measured within a specific time frame.

MM Model

MM Model refers to the Modigliani-Miller theorem, which propositions about the irrelevance of capital structure in determining the overall value of a firm under certain market conditions and assumptions.

Optimal Capital Structure

Optimal capital structure is the ideal mix of debt and equity financing that minimizes a company's cost of capital and maximizes its stock price.