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

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Definitions:

Deceived

The act of misleading or tricking someone, often to gain an advantage.

Fraudulent Misrepresentation

Deliberately providing false information to deceive another party, often to gain a financial advantage.

Intent To Deceive

Refers to the willful act of misleading or deceiving another party, often to gain an advantage or to persuade them to act in a certain way.

Knowledge Of Falsity

Awareness or acknowledgment by a person that a statement or piece of information is false or misleading, often a crucial element in fraud and defamation cases.