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Belco Company has a weighted average cost of capital of 12%. It recently has only been able to invest in projects that yield a return
Belco Company has a weighted average cost of capital of 12%. It recently has only been able to invest in projects that yield a return of 8-12%, which of the following statements is most likely correct?
a. The firms WACC is not a relevant factor in making capital investment decisions.
b. The firm is creating/adding value for its shareholders.
c. The firms stock price will go up.
d. The firms stock price will eventually go down.
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