Question
Suppose a company is expanding into a new business activity which is much less risky than the companys current business activities. Other things being equal,
Suppose a company is expanding into a new business activity which is much less risky than the companys current business activities. Other things being equal, what is the most probably effect on the companys WACC?
Group of answer choices
No effect on WACC.
WACC will increase.
WACC will decrease.
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Project Financing Asset-Based Financial Engineering
Authors: John D Finnerty
3rd Edition
1118421841, 9781118421840
