Question
When can the cost of capital for a company as a whole be a valid measure of the cost of capital for a particular project
When can the cost of capital for a company as a whole be a valid measure of the cost of capital for a particular project
A. When market data are available.
B. When it is not practicable to estimate the cost of capital for individual projects.
C. When the risk of a new project is the same as the risk of the company's existing assets.
D. When CAPM is used as an ex-post model.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
