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A Laramie Labs uses a risk-adjustment when evaluating projects of different risk. Its overall (composite) WACC is 10%, which reflects the cost of capital for

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A Laramie Labs uses a risk-adjustment when evaluating projects of different risk. Its overall (composite) WACC is 10%, which reflects the cost of capital for its average asset. Its assets vary widely in risk, and Laramie evaluates low risk projects with a risk-adjusted project cost of capital of 8%, average risk projects at 10%, and high- risk projects at 12%. The company is considering the following projects: Project Risk Expected Return High 15% B Average 129 High 119 D Law 794 E Low 6% Which set of projects would maximize sharcholder wealth? A, B, and D b. A, B, and C. And d. A, B, C, and D

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