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84. The required rate of return for a stock which has 1.5 times the risk of the market in general will be: A. 1.5 times
84. The required rate of return for a stock which has 1.5 times the risk of the market in general will be: A. 1.5 times the risk-free rate. B. 1.5 times the market rate of return. C. 1.5 times the market risk premium, plus the risk-free rate. D. 1.5 times the risk-free rate, plus the market risk premium. 85. Under the traditional approach to cost-of-capital analysis, a firm's value: A. remains the same, regardless of the amount of debt used. B. increases as more debt is used. C. decreases as more debt is used. D. is at its maximum when the weighted average cost of capital is minimized. 86. Each project should be judged against: A. the specific means of financing used to support its implementation. B. the going interest rate at that point in time. C. the cost of new common stock equity. D. the weighted average cost of capital
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