Wilson's Is Reviewing a Project with an Internal Rate of Return

question 15

Multiple Choice

Wilson's is reviewing a project with an internal rate of return of 13.09 percent and a beta of 1.42.The market risk premium is 8.1 percent,the tax rate is 35 percent,and the risk-free rate is 2.9 percent.The firm's WACC is 12.68 percent.Will the project be accepted if the WACC is used as the discount rate for the project? Should the project be accepted according to the CAPM,and why or why not?

• A)Yes;No;The CAPM return of 14.40 percent exceeds the IRR of 13.09 percent.
• B)Yes;Yes;The project plots above the security market line.
• C)Yes;Yes;The CAPM of 10.28 percent is less than the IRR of 13.09 percent.
• D)No;Yes;The project plots above the security market line.
• E)No;No;The project plots below the security market line.

Assess and classify clients' readiness to change using appropriate tools.

Know the appropriate timing and context for employing different counseling strategies.

Describe the flow and components of a nutrition counseling session, including preparation, assessment, intervention, and evaluation.

Assess a client's motivation or readiness to change before providing interventions.

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Definitions:

Foreign Currency Market

A global marketplace for exchanging national currencies against one another, also known as the foreign exchange market.

Foreign Currency Option

A financial derivative that gives the holder the right, but not the obligation, to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specific date.

Right

In finance, typically refers to a contractual entitlement to purchase additional shares at a specified price before a certain date, often associated with share issuance.

Obligation

A legal or financial duty or responsibility to make payments, fulfill contracts, or otherwise perform as agreed.