Store-It Owns and Operates Self-Storage Units Across the Country

question 207

Multiple Choice

Store-It owns and operates self-storage units across the country. The firm is well established and has a cost of capital of 9 %. Stop n Drive operates several stations which supply bread and milk along with gasoline, diesel, and kerosene fuels. Stop n Drive's cost of capital is 13 %. Both companies are considering opening a chain of bakeries which would supply fresh baked goods for individual consumers. The internal rate of return on these bakeries is 11.5 %. Which firm or firms, if either, should open the bakery outlets?

• A) Store-It only.
• B) Stop n Drive only.
• C) Both Store-It and Stop n Drive.
• D) Either Store-It or Stop n Drive.
• E) Cannot be determined from the information given.

---

Definitions:

Experimenter Cues

Unintentional signals or behaviors from a researcher that can influence the responses or actions of participants in a study.

Random Assignment

The process of allocating subjects randomly to experimental and control groups in a study to ensure that each participant has an equal chance of being assigned to any group, thus reducing bias.

Correlational Studies

Studies in which the investigator analyzes the relationships among variables that were in place before the study, without manipulating those variables.

Placebo Effects

Observable or measurable changes in health or behavior resulting from the administration of a placebo, demonstrating the power of belief and expectation in the healing process.