Jeff Bezos has just promoted you to Chief Financial Officer of Amazon. You find on your desk plans for Amazona€™s latest project: to corner the paper clip market by buying the worlda€™s largest paper clip manufacturing company. Your financial analysts have determined that this project will be a lot less risky than any of Amazona€™s other current operations, since paper clips will probably continue to be used at the current level well into the foreseeable future. You were not able to find a pure play paper clip company during your analysis. Amazona€™s overall WACC is 10%. Which of the following would be a reasonable course of action to take? a. Take 3 percentage points off the company’s overall WACC, since this project is less risky than Amazon’s overall operations
b. Use 10% as the project’s WACC, since risk does not play a role in WACC
c. Add 3 percentage points to the company’s overall WACC, because lower risk would lead to a higher WACC
d. Use an average of pure-play paper clip companys' WACC's as a proxy for this project’s WACC
e. Both A and D are reasonable courses of action for you to take

Aland development company purchases several acres of land adjacent to a wildlife reserve. it plans to build a new community, complete with shops and schools. green sands, a local environmental group, complains that the company's proposed building methods will disrupt the area's ecological balance. the company wants to respect the local ecology but also wants to build its development. the company decides to schedule a meeting with green sands's representatives to make choices about the property that are agreeable to both sides. which strategy would be most effective in this situation?

Each of the following scenarios is based on facts in anactual fraud. categorize each scenario as primarily indicating (1) anincentive to commit fraud, (2) an opportunity to commit fraud, or(3) a rationalization for committing fraud. also state your reasoningfor each scenario.a. there was intense pressure to keep the corporation ' stock from declining further. this pressure came from investors, analysts,and the ceo, whose financial well-being was significantly dependent on the corporation ' s stock price.b. a group of top-level management was compensated (mostly in the form of stock-options) well in excess of what would be considered normal for their positions in this industry.c. top management of the company closely guards internal financial information, to the extent that even some employees on a “need-to-know basis” are denied full access.d. managing specific financial ratios is very important to the company, and both management and analysts are keenly observant of variability in key ratios. key ratios for the company changed very little even though the ratios for the overall industry were quite volatile during the time period.e. in an effort to reduce certain accrued expenses to meet budget targets, the cfo directs the general accounting department to reallocate a division’s expenses by a significant amount. the general accounting department refuses to acquiesce to the request, but the journal entry is made trough the corporate office. an accountant in the general accounting department is uncomfortable with the journal entries required to reallocate divisional expenses. he brings his concerns to the cfo, who assures him that everything will be fine and that the entries are necessary. the accountant considers resigning, but he does not have another job lined up and is worried about supporting his family. therefore, he never voices his concerns to either the internal or external auditors.f. accounting records were either nonexistent or in a state of such disorganization that significant effort was required to locate or compile them.

Why is following an unrelated diversification strategy especially advantageous in an emerging economy? a. it allows the conglomerate to overcome institutional weaknesses in emerging economies. b. it allows the conglomerate to form a monopoly in emerging economies. c. it allows the conglomerate to use well-defined legal systems in emerging economies. d. it allows the conglomerate to take advantage of strong capital markets in emerging economies.