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
(c) lower, higher
(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.