Answer and Explanation:
The computation is shown below:
As we know that
Required rate of return = Risk Free Rate + Beta × (Market Return -Risk Free Rate)
For company A
= 3% + 1 × 6%
= 9%
For Company B
= 3% + 3 × 6%
= 21%
As we can see that the forecast return should be lower than the required return so we should not invest in company A also the same is done in company B too
Therefore we dont invest in any of the company
Answer:
The accept/reject decision depends on the firm's risk-adjustment policy. If Weatherall's policy is to increase the required return on a riskier-than-average project to 3% over rS, then it should reject the project - option C
Explanation:
Once the said project is riskier, the accept/ reject criterion will be considered based on risk adjusted discount rate which would be higher than company’s cost of capital by the amount of risk premium. Here the risk premium is 3%.
Thus, the decision to accept/reject depends on the risk-adjustment policy of the firm. If Weatherall's policy is to increase the required return on a riskier-than-average project to 3% over rS, then it should reject the project - option C is the best answer.
Answer:
The fourteen principles of management created by Henri Fayol are explained below.
Division of Work- ...
Authority and Responsibility- ...
Discipline- ...
Unity of Command- ...
Unity of Direction- ...
Subordination of Individual Interest- ...
Remuneration- ...
Centralization-
Answer: False
Explanation: Because it's best for you to do your small goals first and then go big.