If a Typical U

Multiple Choice

If a typical U.S. company uses the same discount rate to evaluate all projects, the firm will most likely become

A) Riskier over time, and its value will decline.
B) Riskier over time, and its value will rise.
C) Less risky over time, and its value will rise.
D) Less risky over time, and its value will decline.
E) There is no reason to expect its risk position or value to change over time as a result of its use of a single discount rate.