Author Question: Using the weighted average cost of capital as the required rate of return for every project will ... (Read 106 times)

jasdeep_brar

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Using the weighted average cost of capital as the required rate of return for every project will
 
  A) cause a firm to accept projects that were too risky.
  B) cause a firm to reject projects that should have been accepted.
  C) result in maximization of shareholder wealth.
  D) A and B above

Question 2

Three types of arbitrage are simple arbitrage, rectangular arbitrage, and covered-expense
  arbitrage.
 
  Indicate whether the statement is true or false


juliaf

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Answer to Question 1

D

Answer to Question 2

FALSE



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