Which of the Following Statements Is Correct

question 91

Multiple Choice

Which of the following statements is correct?

• A)If the risk-free rate increases, it will have no impact on the weighted average cost of capital.
• B)Investor returns are reduced when float costs increase, and therefore float costs reduce the weighted average cost of capital.
• C)The weighted average cost of capital is a historical cost.
• D)None of these statements are correct.

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Definitions:

Weak Situation

A scenario where social norms and expectations are unclear, leaving individuals more free to act based on their personality.

Schwartz

Refers to Shalom Schwartz, a social psychologist known for his work on identifying universal aspects of human values and their influence on behavior.

Cross-Cultures

Refers to the examination or comparison of two or more different cultures, highlighting the differences and similarities in behaviors, practices, and beliefs.

Benevolence

The quality of being well-meaning; kindness and generosity toward others.