NO.PZ2024021802000036
问题如下：
An investor identifies climate change policy risk as significant for a company given its carbon-intensive operations. This should be incorporated into the company's discounted cash flow (DCF) analysis by lowering its:选项：
A.discount rate. B.cost of capital. C.revenue projections.解释：
A. Incorrect because the investor should increase, not reduce, the company's discount rate. Here's an example: An investor is evaluating an oil and gas producer. The investor identifies climate change policy risk as significant for the company given its carbon-intensive operations and products. To incorporate this into a DCF analysis of the company, the investor may increase the discount rate to account for the risk that future cash flows could be impacted by unpredictable climate policy shifts.
B. Incorrect because the investor should increase, not reduce, the company's cost of capital. Here's an example: An investor is evaluating an oil and gas producer. The investor identifies climate change policy risk as significant for the company given its carbon-intensive operations and products. To incorporate this into a DCF analysis of the company, the investor may increase the discount rate [required rate of return, cost of capital] to account for the risk that future cash flows could be impacted by unpredictable climate policy shifts.
C. Correct because the investor should reduce revenue projections. Here's an example: An investor is evaluating an oil and gas producer. The investor identifies climate change policy risk as significant for the company given its carbon-intensive operations and products. To incorporate this into a DCF analysis of the company, the investor may reduce revenue projections based on government policies that subsidize alternative, renewable energy sources and electric alternatives for transportation. The forecasts would factor in various scenarios for the pace and impacts of the policy.
A和B都是reduce么
