NO.PZ2024021801000058
问题如下：
While updating a company's cost of capital analysis, an analyst increases her environmental risk assessment. As a result, the analyst's valuation of the company should:选项：
A.decrease.
B.not change.
C.increase.
解释：
A. Correct because an increase in environmental risk will increase the company's estimated cost of capital. For example, a company’s environmental management processes and policies are judged strong or weak. After this judgment, the cost of capital used to discount cash flows in a DCF analysis is adjusted down or up by 1% to account for this. A higher cost of capital would lead – all other factors being equal – to a lower intrinsic value estimate from the model.
A higher cost of capital would lead – all other factors being equal – to a lower intrinsic value estimate from the model.
