Question
1. A firms WACC is the appropriate discount rate to value a project undertaken by the firm only if the project has the same risk
1. A firms WACC is the appropriate discount rate to value a project undertaken by the firm only if the project has the same risk as the firms existing assets.
2. If a firms cost of debt is lower than its cost of equity, shifting the firms financing toward more debt will always reduce the firms WACC.
TRUE OR FALSE.
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Forensic And Investigative Accounting
Authors: Crumbley D. Larry, Fenton Edmund D., Jr. Smith G. Stevenson
9th Edition
0808053221, 9780808053224
