Langston Labs Has an Overall (Composite) WACC of 10%, Which

question 61

Multiple Choice

Langston Labs has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset. Its assets vary widely in risk, and Langston evaluates low-risk projects with a WACC of 8%, average-risk projects at 10%, and high-risk projects at 12%. The company is considering the following projects: Which set of projects would maximize shareholder wealth?

• A) A and B.
• B) A, B, and C.
• C) A, B, and D.
• D) A, B, C, and D.
• E) A, B, C, D, and E.

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Definitions:

Endless Chain

A sales technique where current customers are used to generate referrals for future sales opportunities.

Approach Phase

in sales refers to the initial stage of the sales process where a salesperson first makes contact with a prospective customer.

Trial Close

A sales technique where the salesperson presents a question or statement to the potential buyer to gauge their readiness to complete the purchase.

Prospect Pool

A group of potential customers or clients identified as likely to be interested in a company's products or services.