Kate Is the CFO of a Major Firm and Has

question 30

Multiple Choice

Kate is the CFO of a major firm and has the job of assigning discount rates to each project under consideration.Kate's method of doing this is to assign an incrementally higher rate as the risk level of the project increases and a lower rate as the risk level declines.Kate is applying the ___ approach. 

• A)pure play
• B)divisional rating
• C)subjective
• D)straight WACC
• E)equity rating

---

Definitions:

Boss's Praise

Positive feedback or approval from someone's supervisor or employer, often serving as a motivational tool and a recognition of good work.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, pioneered by B.F. Skinner.

Conditioning

A process of behavior modification by which a subject comes to associate a desired behavior with a previously unrelated stimulus.