When an individual weighs her options and makes a choice that maximizes her benefit at the minimum cost, economists refer to this as a process of... rational decision making. You just studied 8 terms!
Answer: (1)revolving credit, (2)installment account,& (3)charge card
Explanation:
(1)Borrowers have a fixed credit line that is replenished as the outstanding balance is paid off.

(2)Borrowers have to make regular payments under fixed terms.

(3)Consumers can shop using credit at specific locations.
Answer:
The multiple choices are:
9.98 percent
10.04 percent
10.79 percent
10.37 percent
10.45 percent
The third option of 10.79% is correct
Explanation:
The cost of equity according to Miller and Modgiliani capital asset pricing model is given below:
Ke=Rf+beta*(Mrp-Rf)
Rf is the risk free rate which is the return on government security is 2.7%
beta is 1.14
Mrp is the market risk premium is 7.1% which is given in the formula as (Mrp-Rf)
Ke=2.7%+1.14*7.1%
Ke=2.7%+8.09%
Ke=10.79%
Hence the correct option out of the options given above is the third option
It is expected that any shareholder that invests in the shares of Southern Home Cooking would get return of 10.79%