Suppose a Firm Uses a Single Source of Capital to Fund

question 89

Multiple Choice

Suppose a firm uses a single source of capital to fund a project.Which of the following statements is correct?

• A)Only the cost of that source should be used to evaluate the project.
• B)This project should still be evaluated using the firm's WACC.
• C)The average cost of all previously raised capital should be used for evaluation.
• D)Book values of the funding source should be used in calculating WACC.

---

Definitions:

Negative Emotions

Feelings or emotional states that are unpleasant or detrimental, such as sadness, anger, or fear.

Emotionally Unstable

A term describing individuals who experience rapid, intense emotional changes that are unpredictable and can affect their behavior.

Expressing Anger

The act of recognizing and communicating feelings of anger in a healthy and constructive manner.

Temperament

The innate or naturally occurring patterns of personal behavior, mood, and emotional responses.