CFA Practice Question

There are 132 practice questions for this topic.

CFA Practice Question

Which approach is more likely to involve a weighted average of the costs of capital for different business units within a company?

A. Top-down approach
B. Bottom-up approach
C. Cost of equity approach
D. Project-specific approach

Correct Answer: B

Company-specific factors are the primary focuses of a bottom-up approach in estimating the cost of capital.

User Contributed Comments 0

You need to log in first to add your comment.