If a firm uses its WACC as the discount rate for all of the projects it undertakes then the firm will tend to: I. reject some positive net present value projects, II. accept some negative net present value projects. III. favor low risk projects over high risk projects. IV. become riskier over time. O A. I and III only B. III and IV only C I and II only I, II, and IV only I, II, III, and IV OD QUESTION 2 Teri's Tires has 7 percent preferred stock outstanding that sells for $68 a share. What is Teri's cost of preferred stock? 9.52 percent B.9.71 percent C.10.29 percent D. 10.78 percent E 11.76 percent