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An all-equity firm is considering the projects shown below. The T-bill rate is 3 percent and the market risk premium is 6 percent. If the
An all-equity firm is considering the projects shown below. The T-bill rate is 3 percent and the market risk premium is 6 percent. If the firm uses its current WACC of 12 percent to evaluate these projects, which project(s) will be incorrectly rejected?
Project A | ||
Projects B and C | ||
Project D | ||
Project B |
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