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Dmitriy789 [7]
3 years ago
12

Which one of the following statements is correct? Firms should accept low-risk projects prior to funding high-risk projects. Com

panies that elect to use the pure play method for determining a discount rate for a project cannot subjectively adjust the pure play rate. The pure play method is most frequently used for projects involving the expansion of a company's current operations. A project that is unacceptable today might be acceptable tomorrow given a change in market returns. Making subjective adjustments to a company's WACC when determining project discount rates unfairly punishes low-risk divisions within the company.
Business
1 answer:
Crank3 years ago
4 0

Answer:

The correct statement is:

A project that is unacceptable today might be acceptable tomorrow given a change in market returns.

Explanation:

The market returns determine the acceptability or otherwise of projects.  Market returns cannot be accurately determined at the initial time of investment, except for fixed-income securities.  It is possible that a project that is not accepted today because of its returns may become acceptable tomorrow because the market returns have turned positive.  Market returns are not fixed for investments in corporate stocks.

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<u>Explanation:</u>

The applicant might not possess the skills required to do the job or he may not be able to meet the number of working hours required by the company. In this case the employer is not under pressure to recruit that employee. Employer cannot reject any applicant for the reason of applicant's disability, age as 55 years or based on the nationality.

Labor standard act needs to be meet by the employer to hire legally or the employer will have to face the legal consequences.

4 0
4 years ago
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Answer:

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3 years ago
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Answer:

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Explanation:

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