Question: For a multi-product firm, if a project's beta is NO different from that of the overall firm, then the: a. project should be discounted using

For a multi-product firm, if a project's beta is NO different from that of the overall firm, then the:

a. project should be discounted using the overall firm's beta.

b. CAPM can no longer be used.

c. project should be discounted at the T-bill rate.

d. project should be discounted at the market rate.

e. project should be discounted at a rate commensurate with its own beta.

Buyers discount the price they are willing to pay because of adverse selection, in a world with information asymmetry, is based on:

a.

credibility principle.

b.

pecking order hypothesis.

c.

lemons principle.

d.

signaling theory of debt.

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