The major factor affecting the cost or interest rate

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Reference no: EM131354565

1. The following information pertains to a segment of the Doggie Company. Invested capital is defined as total assets. The weighted average cost of capital is 10%. The ROI of the segment before the project is 20%. The ROI of the segment after the project is 18%. The manager is evaluated based on the segment's economic profit. A project earning a ROI of 12% should be ________.

accepted

rejected

compared to the company's ROI

compared to the company's residual income

2. The major factor(s) affecting the cost, or interest rate, on a bond is (are) its

maturity.

size of the offering.

issuer risk.

basic cost of money.

all of these.

Reference no: EM131354565

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