True or false? a. If a company uses its company cost of capital to value all projects,

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True or false?

a. If a company uses its company cost of capital to value all projects, it will overestimate the value of high-risk projects.

b. It is okay to use the company cost of capital to value every project as long as the high risks of some projects are offset by the low risks of others.

c. A company can reduce the discount rate for a project by financing it with debt.

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-1260566093

10th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Posted Date: May 21, 2019 12:13 AM

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True or false? a. If a company uses its company cost of capital to value all projects,

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Introduction Weighted average cost of capital is the average cost of capital of all securities and s... View the full answer

Fundamentals of Corporate Finance

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