Question: A firm is currently taking on two projects with an individual cost of capital of 10 percent and 12 percent for each of the projects.

A firm is currently taking on two projects with an individual cost of capital of 10 percent and 12 percent for each of the projects. That means that the before-tax cost of capital for the firm must be between 10 and 12 percent.

A) True.

B) False

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