Langston Labs Has an Overall (Composite) WACC of 10%,which Reflects

Multiple Choice

Langston Labs has an overall (composite) WACC of 10%,which reflects the cost of capital for its average asset.Its assets vary widely in risk,and Langston evaluates low-risk projects with a WACC of 8%,average projects at 10%,and high-risk projects at 12%.The company is considering the following projects:Which set of projects would maximize shareholder wealth? $\begin{array}{l}\begin{array}{ccc}\underline { \text { Project } } &&\underline { \text {Risk }} \\\text { A } & & \text { High } \\n & & \text { Average } \\\text { C } & & \text { High } \\\text { D } & & \text { Low } \\\text { E } & & \text { Low }\end{array}\begin{array}{c}\underline { \text {Expected Return} } \\15 \% \\12 \\11 \\9 \\6\end{array}\end{array}$

A) A, B, and C
B) A, B, and D
C) A, B, C, and D
D) A, B, C, D, and E