Question
#1: Capital Budgeting Related a) If the projects being selected by a company have a higher degree of risk than current existing projects do, what
#1: Capital Budgeting Related
a) If the projects being selected by a company have a higher degree of risk than current existing projects do, what will happen to the cost of capital over time? If projects being selected have less risk than current projects do, what will happen to the cost of capital over time?
b) How might a change in the long-term interest rate (a change upward or a change downward) affect the marginal cost of equity capital and the overall marginal cost of capital?
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Multinational Finance
Authors: Kirt C. Butler
4th Edition
1405181184, 978-1405181181
