Stone Corp. has three divisions: A, B, and C. Division A has the least risk and Division C has the most risk. If Stone Corp. uses the same cost of capital for all of the firm's projects it will:

A. accept more projects from Division A making the firm less risky over time and reducing the cost of capital.

B. accept more projects from Division C making the firm more risky over time and increasing the firm's cost of cpaital.

C. accept more projects from Division C making the firm less risky over time and increasing the cost of capital.

D. always make good capital budgeting decisions.

E. accept more projects from Division C making the firm more risky over time and reducing the cost of capital.