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3. [3 Points] You are comparing two mutually exclusive projects A and B. The crossover rate is 12.3%. You have determined that you should accept
3. [3 Points] You are comparing two mutually exclusive projects A and B. The crossover rate is 12.3%. You have determined that you should accept Project A if the required rate of return is 13.5%. Can you conclude that you can always accept project A if the required return exceeds the crossover rate? Why? 4. [2 Points] If a firm borrows less debt relative to equity, will its financial leverage increase or decrease? Will its equity beta increase or decrease for given the asset beta is unchanged
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