Suppose That a Foreign Project Has a Beta of 1

question 17

Multiple Choice

Suppose that a foreign project has a beta of 1.15,the risk-free return is 13% and the required return on the market is estimated at 21%.Then the cost of capital for the project is

• A)24.2%
• B)22.2%
• C)19.3%
• D)15.4%

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Definitions:

Personal Power

Personal power is the capacity of an individual to influence others based on personal attributes and qualities rather than formal authority, such as charisma, expertise, or relational connections.

Stress

A psychological and physical reaction to demands, pressures, or threats, which can affect one's mental and physical health.

Organizational Politics

The use of power and social networking within an organization to achieve changes that benefit the organization or individuals within it.

The Rocks

Often referring to fundamental or very solid and reliable elements within a particular context, though without more context, its specific meaning can vary.