Question

29. If a firm applies its overall cost of capital to all its proposed projects, then the divisions within the firm will tend to A) receive more B) avoid risky projects so that they will receive more funding. C) become less risky over time based on the projects that are accepted. D) have equal probabilities of receiving funding for their projects. . E) propose less risky projects than if separate discount rates were applied funding if they represent the riskiest operations of the firm. to each project.

Answer 1

C2 Answert - OPtiorn ca) poo posed rojeets Cul the Cost of capr'tal Overr c eceiving Mor e Funding whan nvesteng twrtt eel ted ame be ttes tthan Мone osky Pvojeet арыщтg makmg retuons for) the ?nves tment poatet 2aeh Separahe drsCount rates to net the Scattered psojeets Because Threstment thestment rYstruments orU geherate hrghere periods and thvestores voLatile bo0M to meet thee manket euring retun short tM obu*gatrong wru be able Qxam Thank You ! Alt the Best