4. Stand-alone principle [LO 10.1] Suppose a financial manager is quoted as saying, Our firm uses the
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4. Stand-alone principle [LO 10.1] Suppose a financial manager is quoted as saying, ‘Our firm uses the stand-alone principle. Because we treat projects like minifirms in our evaluation process, we include financing costs because they are relevant at the firm level.’ Critically evaluate this statement.
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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