Author Question: The use of the same cost of capital (risk adjusted discount rate) for all capital projects in a ... (Read 86 times)

Caiter2013 · **on:** Jul 1, 2018

The use of the same cost of capital (risk adjusted discount rate) for all capital projects in a corporation

A) is usually the correct procedure.
B) is incorrect since different divisions of the corporation may be faced with different levels of risk.
C) is incorrect since different capital projects, even in the same division, may be faced with different levels of risk.
D) Both B and C

Question 2

Your U.S.-based company is doing business internationally. One way to mitigate exchange rate risk is to

A) require payment in US.
B) use a forward contract.
C) use a futures contract.
D) All of the above.