When We Use the WACC to Assess a Project, We

question 54

Multiple Choice

When we use the WACC to assess a project, we assume that the ________ ratio does not change.

• A) reward to systematic risk
• B) risk to reward
• C) debt to equity
• D) volatility to systematic risk

---

Definitions:

T-Score

A standardized score that indicates how many standard deviations an element is from the mean of a distribution.

Confidence Estimate

A range of values calculated from the sample data that is likely to include the true value of an unknown population parameter with a certain level of confidence.

T-Score

A standardized score that indicates how many standard deviations an observation is from the mean of the distribution.

Confidence Estimate

An interval estimate that is used to express the degree of uncertainty associated with a sample statistic.