- CFA Exams
- CFA Level I Exam
- Study Session 7. Corporate Finance (1)
- Reading 19. Capital Budgeting
- Subject 4. Risk analysis of capital investments - market risk methods
CFA Practice Question
Dan is considering an investment project. He knows that the cost of capital associated with the project depends on
B. the total risk of the firm's equity.
C. the interest rate on the firm's existing long term bonds.
D. the type of security to be issued to finance the project.
E. the type of assets needed for the project, that is, whether they are long-term or short-term assets.
A. the risk associated with the project.
B. the total risk of the firm's equity.
C. the interest rate on the firm's existing long term bonds.
D. the type of security to be issued to finance the project.
E. the type of assets needed for the project, that is, whether they are long-term or short-term assets.
Correct Answer: A
User Contributed Comments 2
| User | Comment |
|---|---|
| ceekay | Risk associated with the project includes market risk and corporate risk |
| cfaajay | where is this asked ceeKay? :-) |