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25. If a firm uses the same cost of capital to evaluate all investment projects, regardless of their risks, then over time: Nothing will happen,

25.

If a firm uses the same cost of capital to evaluate all investment projects, regardless of their risks, then over time:

Nothing will happen, since capital budgeting has nothing to do with firm value

Its stock price will rise

It will become less risky

It will become riskier

Its stock price will decline

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