Question: Based on its target capital structure, Tiger Ine estimates a WACC of 12% for its average-risk projects, a WACC of 10% for its below avenge
Based on its target capital structure, Tiger Ine estimates a WACC of 12% for its average-risk projects, a WACC of 10% for its below avenge risk projects, and a WACC of is for its above average risk projects. Tiger Inc. is choosing between three independent projects. Which of the following projects (A, B, and C) should the company accept? a. None of the projects should be accepted. b. Project C, which is of above-average risk and has a return of 13%. c. Project B, which is of below-average risk and has a return of 11% d. Project A, which is of average risk and has a return of 12% e. All of the projects should be accepted
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