Multiple Choice
If a firm uses the same company cost of capital for evaluating all projects, which of the following is likely?
I. Rejecting good low risk projects
II. Accepting poor high risk projects
III. Correctly accept projects with average risk
A) I only
B) I and II only
C) I, II, and III
D) II only
Correct Answer:
Verified
Correct Answer:
Verified
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