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Match each of the options above to the items below. The risk of a project arising from the line of business it is in; the
Match each of the options above to the items below. The risk of a project arising from the line of business it is in; the variability of a firm's or division's cash flows. The individual costs of each type of capital-bonds, preferred stock, and common stock. An estimated WACC computed using some sort of proxy for the average equity risk of the projects in a particular division. The risk of a project to equity holders stemming from the use of debt in the financial structure of the firm; refers to the issue of how a firm decides to distribute the business risk between debt and equity holders.
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