14) The risk of ___________________ an adverse movement in relative currency exchange rates is known as ___________________.

Question 14 options:

1)

A decrease in WACC due to; a capital structure failure

2)

A loss in company value due to; currency exchange rate risk

3)

An increase in WACC due to; capital structure exchange rate risk

4)

A decrease in the company's credit rating due to; credit exchange rate risk

16) Stock XYZ realized the following returns over the past four years: 0.15, 0.02, -0.20, and 0.15. Based on this information, what is the geometric mean return over the four years rounded to the nearest hundredth of a percent?

Question 16 options:

1)

0.92 percent

2)

1.92 percent

3)

2.92 percent

4)

3.92 percent

17) Which types of projects are likely to be incorrectly rejected when the WACC is used as the discount rate for all projects?

Question 17 options:

1)

Low risk projects

2)

Moderate risk projects

3)

High risk projects

4)

All projects