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Problems In the problems below, you can use a market risk premium of 5.5% and...

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Accounting

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Problems In the problems below, you can use a market risk premium of 5.5% and at 1. Examine the following sources of risk, and indicate whether you would consider them as part of an investment analysis if you were a large publicly traded clothing retail firm: a. The project analyst might have overestimated the revenues on the store. b. There might be a natural disaster (hurricane or flood) in the area where the project is located, resulting in major losses. c. A competitor might open a store close by and drive down margins and sales. d. A manufacturing plant that employs most of the people who live in the area around the store might close down. 5 e. An economic recession leads to layoffs at the plant, resulting in lower sales and profits at the store. f. A national sales tax that would reduce sales might be passed by lawmakers. g. Inflation increases, increasing interest rates

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