If the ROE on a New Investment Is Less Than

question 6

Multiple Choice

If the ROE on a new investment is less than the firm's required rate of return

• A) the investment increases the firm's value.
• B) the investment leaves the firm's value unchanged.
• C) the effect on the firm's value is unpredictable.
• D) the investment reduces the firm's value.

---

Definitions:

Deoxyribonucleic Acid

A molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream, regulating various bodily functions including metabolism, growth, and mood.

Spinal Cord

The cylindrical bundle of nerve fibers and associated tissue that is enclosed in the spine and connects nearly all parts of the body to the brain, forming the central nervous system.

Genetics

The scientific study of heredity and the variation of inherited characteristics.