21.

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:

Project

Risk

Expected Return

A

High

15%

B

Average

13%

C

High

11%

D

Low

9%

E

Low

7%

Which set of projects would maximize shareholder wealth?

Group of answer choices

A, B, and D.

A, B, C, and D.

A, B, and C.

A, B, C, D, and E.

A and B.