Read chapter 11 in the class text and respond to the following: 1.) What concept in the assigned chapter describes the minimum rate of return that must be earned from investments to ensure the value of the firm does not decrease? 2. What is the criteria or guiding principles for using the capital asset pricing model (CAMP) to determine the value of equity securities? 3. What is a weighted average cost of capital (WACC) and what are its advantages and disadvantages with regards to capital budgeting?

Which of the following is an example of formal management controls? answers: a firm's culturethe willingness of employees to monitor each otherbudgeting and reporting activitiesmanagerial motivation

The lee family is looking to buy a house in one of two suburban areas just outside of a major city, and air quality is a top priority for them. overall air quality is calculated by taking measures in 100 locations within each suburb and then calculating a measure of central tendency. in one suburb, there is a major bus station that creates very poor air quality at its location but has no impact in the surrounding parts of the suburb. in this situation, which measure of overall suburb air quality would be most useful?

Why is efficiency an important economic goal?