Which of the Following Statements About the Required Rate of Return

question 16

Multiple Choice

Which of the following statements about the required rate of return represents the best advice for a firm's management when considering investment in a foreign project?

• A) The required rate of return should be project specific.
• B) The required rate of return need not represent the market return.
• C) If the project were to pay cash directly to the firm's shareholders, the risk associated with the project would be less important to the firm.
• D) The required rate of return should be the same rate for all of the firm's projects.

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