Use the Following Information to Answer the Question(s)below

question 35

Multiple Choice

Use the following information to answer the question(s) below. The risk-free rate of interest is 3% and the market risk premium is 5%.
-The cost of capital for the oil refining division is closest to:

• A)6.5%.
• B)7.0%.
• C)8.5%.
• D)10.0%.

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Definitions:

CRM

Customer Relationship Management, a strategy and technology for managing a company's interactions with current and potential customers.

TPS

An information system known as the Transaction Processing System is built to accumulate, preserve, change, and access transactions data for an organization.

IS Systems

"Information Systems," integrated sets of components for collecting, storing, and processing data and for providing information, knowledge, and digital products.

Internal Processes

The procedures and activities conducted within an organization to ensure effective operation and fulfillment of the organization's goals.