Based on your understanding of the concept of cost of capital, which of the following statements are valid? Check all that apply. Companies incorporate the required rate of return in the cost of capital to compensate investors for the components' risks. A company's estimate of cost of capital impacts its application in the analysis of new investments that, consequently, affects the value of the firm and shareholders' wealth. Investors care about the incremental value addition that new projects are making; they are least concerned with the discount rates that the company uses. Companies always use the weighted average cost of capital (WACC) as the discount rate to analyze the financial viability of projects. Red Lemon Shipbuilders Inc. has two divisions: one is very risky, and the other exhibits significantly less risk. The company uses its investors' overall required rate of return to evaluate its investment projects. It is most likely that the firm will become: Less risky over time, and its value will decrease Riskier over time, and its value will decrease Less risky over time, and its value will increase Riskier over time, and its value will increase Which of the following statements is correct