4. The firm cost of capital is the appropriate discount rate for a firm's A. low-risk projects. B. high-risk projects. C. average-risk projects. D. risk-free projects. 5. The cost of capital is the same as the cost of equity for firms that are financed A. entirely by debt. B. by both debt and equity. C. entirely by equity. D. by 50 percent equity and 50 percent debt. 6. The cost of capital for a project depends on the A. company's cost of capital. B. use of the capital (the project). C. industry cost of capital. D. company's level of debt financing. 7. If a firm uses the same company cost of capital for evaluating all projects, which situation(s) will likely occur? A. The firm will reject good low-risk projects only. B. The firm will reject good low-risk projects and will accept poor high-risk projects. C. The firm will reject good low-risk projects, accept poor high-risk projects, and accept average-risk projects. D. The firm will accept poor high-risk projects only