Answer:
I) The firm will reject good low-risk projects
II) The firm will accept poor high-risk projects
Explanation:
<h2>Cost of Capital:</h2>
- The required return on the existing firm assets. It is based on the risk of assets.
- The risk of firm’s overall assets is equal to the weighted average risks of firm’s debt, preferred stock and common equity.
- The cost of capital of a firm equals the weighted average of the cost of debt, the cost of preferred stock, and the cost of common equity
Each project has different risk profiles, using one cost of capital for project evaluation might provide misleading results and the investor or company may end up accepting high risk projects or may reject low risk good projects.
D , because liability means to be responsible for something, especially by law.
The final three steps in John Dewey's reflective-thinking process are as follows:
4 step: suggest possible solutions.
5 step: evaluate each solution and select the best one.
6 step: suggest ways for testing or carrying out the solution.
This means that from the given options A is the correct answer: generate solutions, evaluate solutions, select the best solution
Answer:
D.Medicare
Explanation:
Medicare tax is imposed on employed workers to cater for medicare expenses for people aged 65 years and above. The medicare tax also caters to younger persons and people living with disabilities who qualify under specific criteria.
Medicare is financed by the Federal government through the taxes collected from employers and employees.
