Under Normal Circumstances, the Weighted Average Cost of Capital Is

question 43

Multiple Choice

Under normal circumstances, the weighted average cost of capital is used as the firm's required rate of return because:

• A) as long as the firm's investments earn returns greater than the cost of capital, the value of the firm will not decrease.
• B) returns below the cost of capital will cover all the fixed costs associated with the capital and provide excess returns to the firm's stockholders.
• C) it is comparable to the average of all the interest rates on debt that currently prevail in the financial markets.
• D) it is an indication of the return the firm is expecting to earn in future from all of its expansion plans.
• E) the weighted average cost of capital remains unchanged if the components costs of capital changes.

Recognize the ethical and practical implications of psychiatric diagnoses and the use of DSM-5 criteria.

Appreciate the diversity of therapeutic approaches and understand the complexities involved in diagnosing and treating psychological disorders.

Understand the effectiveness and assessment of psychological treatments.

Recognize the consequences and concerns related to misdiagnosis in mental health.