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    Business
  3. Study Set
    Foundations of Finance
  4. Exam
    Exam 9: The Cost of Capital
  5. Question
    Using the Weighted Cost of Capital as a Cutoff Rate
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Using the Weighted Cost of Capital as a Cutoff Rate

Question 49

Question 49

True/False

Using the weighted cost of capital as a cutoff rate assumes that the riskiness of the project being evaluated is similar to the riskiness of the company's existing assets.

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