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AME and cost of capital purposes, the firm should always consider retained oure of capital-le, use these funds first-because retained earnings have earnings as the

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AME and cost of capital purposes, the firm should always consider retained oure of capital-le, use these funds first-because retained earnings have earnings as the first no cost to the firm . True b.False Inc. estimates that its average-nsk projects have a wACC of 10%, its belowaverage risk projects have a WACC of the following porce8%, and its above average risk projects have a WACC of 12%, which of projects (A, B, and C) should the company accept? a. Project B, which is of below-average risk and has a return of 85% b. Project, which is of above-average risk and has a return of 11%. c. Project A, which is of average risk and has a return of 9%. d. None of the projects should be accepted. eAll of the projects should be accepted. If a firm' cost of debt used to calculate its WACC a. True b. False s marginal tax rate is decreased, this would, other things held constant, increase the

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