If an Event Is Unlikely to Occur, Which Probability Is

question 50

Multiple Choice

If an event is unlikely to occur, which probability is a reasonable estimate?

• A)0
• B)0.23
• C)0.82
• D)Not enough information to determine.

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Definitions:

WACC

Refers to the Weighted Average Cost of Capital, a method to determine a company's capital cost where each type of capital is weighted according to its proportion.

Project Risk

The potential for losses or negative outcomes on a project due to various factors such as cost overruns, underperformance, or market changes.

Equity Financing

A method of raising capital by selling company shares to investors, thereby offering them a portion of the ownership.

Weighted Average Cost

An inventory valuation method that calculates inventory and cost of goods sold based on the average cost of all similar items in inventory.