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NADEQ has equal amounts of low-risk, average-risk, and high-risk projects. You as the CFO know from FIN250 class you took at KFUPM that projects with
NADEQ has equal amounts of low-risk, average-risk, and high-risk projects. You as the CFO know from FIN250 class you took at KFUPM that projects with different risks should have different WACC to evaluate them. The CEO disagrees with you and believes that the firm average WACC should be used to evaluate all types of projects. If the CEO's position is accepted, what is likely to happen over time? O A. The company's overall WACC should decrease over time because its stock price should be increasing. OB. The company will reject too many low-risk projects. C. The CEO's recommendation would maximize the firm's intrinsic value. OD. The company will reject too many high-risk projects. O E Things will generally even out over time, and therefore, the firm's risk should remain constant over time
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