In the valuation process, the higher the risk, the greater is the ...

[sc00by25]

In the valuation process, the higher the risk, the greater is the required return.
 
  Indicate whether the statement is true or false

Question 2

Dana Dairy Products' gross profit margin was inferior to the industry standard. This may have resulted from ________. (See Table 3.2)
 
  A) a high sales price
  B) the high cost of goods sold
  C) excessive selling and administrative expenses
  D) excessive interest expense

[mrphibs]

Answer to Question 1

TRUE

Answer to Question 2

B