Question
Name three factors that affect the cost of capital and are beyond the firms control. Suppose a firm estimates its WACC to be 10%. Should
Name three factors that affect the cost of capital and are beyond the firms control. Suppose a firm estimates its WACC to be 10%. Should the WACC be used to evaluate all of its potential projects, even if they vary in risk? If not, what might be reasonable costs of capital for average-, high-, and low-risk projects?
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Personal Finance
Authors: E. Thomas Garman, Raymond Forgue
8th Edition
0618471421, 9780618471423
