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32- Suppose a firm uses a constant WACC in determining the value of capital budgeting projects rather than using the security market line. The firm

32- Suppose a firm uses a constant WACC in determining the value of capital budgeting projects rather than using the security market line. The firm will tend to _____________________.

A) accept profitable, low risk projects and reject unprofitable, high risk projects

B) accept profitable, low risk projects and accept unprofitable, high risk projects

C) reject unprofitable, high risk projects

D) become more risky over time

E) accept profitable, low risk projects

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