In Japan, the principal source of the active monitoring of large companies comes from:

The Gearing Company has an after-tax cost of debt capital of 4%, a cost of preferred stock of 8%, a cost of equity capital of 10%, and a weighted average cost of capital of 7%. Gearing intends to maintain its current capital structure as it raises additional capital. In making its capital-budgeting decisions for the average-risk project, the relevant cost of capital is:

a. 4 percent. b. 7 percent. c. 8 percent.

Which of the following refers to the extent to which a decision maker is willing to gamble when making a decision?

A. Escalation of commitment B. Intuition C. Coalition D. risk propensity