Delta Foods Is an Unlevered Firm That Is Equally as Risky

question 79

Multiple Choice

Delta Foods is an unlevered firm that is equally as risky as the market.U.S.Treasury bills are yielding 2.4 percent,and the market rate of return is 8.1 percent.What discount rate should be assigned to a project that has the same risks as Delta Foods?

• A)8)1%
• B)9)6%
• C)10.%
• D)5)7%
• E)13.7%

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Definitions:

Openness To Differing Opinions

Openness to Differing Opinions refers to the willingness to consider and value perspectives and ideas different from one's own.

Groupthink

In a collective setting, a situation where the inclination towards unity or adaptation prompts decisions that are nonsensical or detrimental.

Immoral Decision

A choice that goes against established moral principles or ethical standards.

Foot-In-The-Door Technique

Asking for a small commitment and, after gaining compliance, asking for a bigger commitment.