Why do we assume that business risk and financial risk are unchanged when evaluating the cost of

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Why do we assume that business risk and financial risk are unchanged when evaluating the cost of capital? Discuss the implications of these assumptions on the acceptance and financing of new projects.

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Principles of managerial finance

ISBN: 978-0132479547

12th edition

Authors: Lawrence J Gitman, Chad J Zutter

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Question Posted: Jan 16, 2013 03:29 AM

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Why do we assume that business risk and financial risk are unchanged when evaluating the cost of

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Holding business risk constant assumes that the acceptance of a given project leaves the ...View the full answer

Principles of managerial finance

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