In Using the ___________ Approach to Estimating the Cost of Capital

question 237

Multiple Choice

In using the ___________ approach to estimating the cost of capital for a division, an analyst proceeds by observing the returns for a firm whose operations are in the same risk class as the division.

• A) Pure play.
• B) Conglomerate.
• C) Market specialist.
• D) Correspondent division.
• E) Parallel risk class.

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Definitions:

Business Messages

Communication artifacts that convey specific business-related information to an intended audience, through various mediums such as email, memos, letters, or reports.

Transitional Words

Words or phrases used to link sentences and paragraphs smoothly, indicating relationships between ideas.

Cohesiveness

The quality of being logically united and consistent, making the parts of a text or argument fit together smoothly.

Transitional Devices

Transitional Devices are words, phrases, or sentences that provide a smooth connection between ideas, paragraphs, or sections in a written or spoken text, enhancing logical flow and comprehension.