39.2k views
1 vote
State whether the following statements are true or false. a. If a company uses its company cost of capital to value all projects, it will overestimate the value of high-risk projects. True False b. It is okay to use the company cost of capital to value every project as long as the high risks of some projects are offset by the low risks of others. True False c. A company can reduce the discount rate for a project by financing it with debt. True False

User Mehdok
by
4.3k points

1 Answer

4 votes

Answer:

A. TRUE

B. FALSE

C. FALSE

User Vivek Verma
by
4.0k points