A) Risk premium method
B) Pure play method
C) Accounting beta method
D) CAPM method
E) Discounted cash flow model
Correct Answer
verified
Multiple Choice
A) 12.73%
B) 14.07%
C) 13.40%
D) 10.05%
E) 15.41%
Correct Answer
verified
Multiple Choice
A) Be indifferent between accepting or rejecting;the firm's required rate of return on the project equals its expected return.
B) Accept the project;its return exceeds the risk-free rate and the before-tax cost of debt.
C) Accept the project;its return is greater than the firm's required rate of return on the project of 12.95%.
D) Reject the project;its return is less than the firm's required rate of return on the project of 16.9%.
E) Reject the project;its return is only 14%.
Correct Answer
verified
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