If a company fails to accurately predict it's cost of equity, then:

A) the firm's wacc will also be inaccurate.
B) the firm may not be using the proper interest rate to estimate NPV.
C) the firm may incorrectly accept or reject projects based on decisions made using the cost of capital computed with an incorrect cost of equity.
D) All of the above are true.


Answer: D

Business

You might also like to view...

An explicit specification of a set of variables and their interrelationships designed to represent some real system or process in whole or in part is called a(n) ________

A) analytical model B) theory C) hypothesis D) objective E) broad-based research

Business

Give two examples for each of the four types of cost classifications. Unit-level: 1. 2. Batch-level: 1. 2. Product-level: 1. 2. Facility-level: 1. 2

Business

Which of the following are standard strategy practices?

a. PESTEL b. SWOT c. BCG matrix d. All of the above

Business

Under the Due Process Clause, for a state tax to be constitutional, a sufficient link must exist between the state and the person, thing, or activity to be taxed

Indicate whether the statement is true or false

Business