What is the assumption about risk when using WACC to evaluate a project?

What will be an ideal response?


Answer: Using WACC in evaluating a firm's project implies that the risk of the project is comparable to the average risk of the firm's other investments.

Business

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Direct marketing is an expensive way of reaching target markets

Indicate whether the statement is true or false

Business

Business interest in social networking sites is not surprising if one considers that 90 percent of ________, also called Generation Y, regularly socialize and chat online

Fill in the blank(s) with correct word

Business

The second step in both the CPM and PERT approaches is?

a. Determine the sequential relationship between all of the activities b. Identify all project activities and time to complete each activity c. Develop an activity network d. Determine the critical path

Business

Stated value stock is no-par stock that has been assigned an amount similar to par value

Indicate whether the statement is true or false

Business