Consider a project with a HIGH beta. If you use the WACC as the discount rate for this project, you would be more likely to the risk and the NPV of the project. overestimate; overestimate overestimate; underestimate underestimate; underestimate underestimate; overestimate Question 9 Assume taxes and bankruptcy costs exist, which of the following is TRUE? I. The WACC depends on the capital structure. II. According to the pecking order, a firm should use equity financing first. I and II Neither I nor II II only I only