What conclusion you can draw from the analysis

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Reference no: EM131962603

1. If a project A is riskier than project B, then project A has a ______ opportunity cost of capital than B. Thus, when we evaluation projects, we should use a ______ discount rate for A compared with B.

Select the best answer from the following:

(a) higher , higher

(b) higher, lower

(d) lower, lower

2. A company has the following Financial Ratios for the year:

Current Ratio - 2.5 and Quick Ratio - 2.4

The industry averages are 2.4 and .97, respectively.

Briefly, what conclusion you can draw from the analysis.

Reference no: EM131962603

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