A firm has multiple divisions of similar nature, yet varying degrees of risk. Which one of the following would be the most appropriate, yet relatively easy, means of assigning discount rates to each of its proposed investments?
A. Assign every project a rate equal to the firm's cost of equity
B. Assign every firm a random rate that varies between the firm's cost of debt and its cost of equity
C. Assign every project a rate equal to the firm's WACC plus or minus a subjective adjustment
D. Determine the best pure play rate for each project
E. Assign every project a rate equal to the market rate of return at the time of the proposal
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A firm has multiple divisions of similar nature, yet varying degrees of risk. Which one of the following would be the most appropriate, yet ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Who sells dragon scales? Ya know like the ones ya put on chainmail. I need to know like soon.
Answers (1)
What are three things you can do smoother a fire in skillet?
Answers (1)
A company that just paid a $1.60 annual dividend is currently priced at $40. You estimate the company will grow at 10% per year for the next 4 years and then grow at 6% per year for the next 2 years before leveling off to an estimated terminal
Answers (1)
Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States? Select the correct answer below: A. The U. S.
Answers (1)
Witch of the following words describe a candidate that comes off well in the media, particularly on television? A. Cynical B. Cryptic D. Mediagenic
Answers (1)
New Questions in Business
1. Identify a company or organization from which you have received high-quality products and describe the characteristics which make it high quality. 2.
Answers (1)
Consider the following list of accounts: Cash Retained Earnings Service Revenue Utilities Expense Salaries Expense Accounts Receivable Accounts Payable Common Stock Equipment Dividends How many of these accounts have a normal debit balance?
Answers (1)
On July 9, Mifflin Company receives an $7,400, 90-day, 10% note from customer Payton Summers as payment on account.
Answers (1)
Which of the following preventive strategies is described below: Violence often escalates. Behaviors like excessive complaining, hostility, threats, swearing, and sabotage frequently precede more violent incidents.
Answers (1)
Malinda took a client to dinner meeting. After agreeing to a business deal, they went to see a show. Malinda paid $100 for the meal and separately paid $45 for the show tickets, amounts that were reasonable under the circumstances.
Answers (1)