Question
9.a) The average ROIC on a project is 13%. WACC is 10% and cost of equity is 14%. Should the project be accepted? A) Yes
9.a) The average ROIC on a project is 13%. WACC is 10% and cost of equity is 14%. Should the project be accepted?
A) Yes
B) No
9.b) If you discount cash flows to the firm at the cost of equity, your NPV will be....
A) Correct
B) Too high
C) Too low
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakin
7th Global Edition
0273754440, 9780273754442
