Which of the Following Informational Updates Would Prompt a Financial

question 53

Multiple Choice

Which of the following informational updates would prompt a financial manager to use a higher cost of capital to analyze a project?

• A)Sales estimates from the marketing department have been less accurate of late.
• B)The treasurer has recently indicated that the firm will increase its use of debt financing.
• C)The treasurer has recently indicated that the firm will decrease its use of debt financing.
• D)Recent estimates indicate the project has a greater percentage of fixed costs than previously thought.

---

Definitions:

Massachusetts

A state in the northeastern United States, known for its significant historical sites related to the early history of the nation.

Virginia

A state in the southeastern and Mid-Atlantic regions of the United States, known for its significant historical landmarks.

Constitutional Convention

A gathering for the purpose of writing new or revising existing constitutions; notably, the convention in 1787 resulted in the drafting of the current United States Constitution.

New York City

The largest city in the United States, known for its significant influence on commerce, finance, media, art, fashion, research, technology, education, and entertainment.