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A company financed totally with ordinary equity is evaluating two distinct projects. The first project has a large amount of non-systematic risk and a small
A company financed totally with ordinary equity is evaluating two distinct projects. The first project has a large amount of non-systematic risk and a small amount of systematic risk. The second project has a small amount of non-systematic risk and a large amount of systematic risk. Which project, if taken, will have a tendency to increase the company's cost of capital?
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