Refer to the Following Table When Answering the Following Questions

question 142

Multiple Choice

Refer to the following table when answering the following questions.
Table 20.1: Annual Average Exchange Rates: 2005-2015
-Consider Table 20.1. According to the table, between 2010 and 2015, the euro ________ against the British pound and ________ to the Canadian dollar.

• A) appreciated; appreciated
• B) depreciated; depreciated
• C) appreciated; depreciated
• D) depreciated; appreciated
• E) Not enough information is given.

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Definitions:

Cost of Capital

The return rate that a company must earn on its investment projects to maintain its market value and satisfy its creditors and investors.

Market Value

The current value at which the market facilitates the sale or purchase of a service or asset.

WACC

Weighted Average Cost of Capital; a calculation used to assess the cost of a company's financing by averaging the costs of its equity and debt, weighted by their respective proportions in the company's capital structure.

Level of Risk

Describes the amount of uncertainty or potential financial loss inherent in an investment decision.