Exam Question
One assumption underlying the use of the cost of capital to analyze capital projects is that
- 1) current costs will remain the same
- 2) capital structure will vary with the type of financing
- 3) different risk projects are required to diversify the firm
- 4) the analyzed projects are of comparable risk to existing projects
View Answer
Answer 4) the analyzed projects are of comparable risk to existing projects
Practice set and Exam Quiz
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