A Firm's WACC

question 46

Multiple Choice

A firm's WACC:

• A) is the proper discount rate for every project the firm undertakes.
• B) is used to value all of the firm's existing projects.
• C) is a benchmark discount rate that is adjusted for the riskiness of each project.
• D)is an informational value only and should never be used as a discount rate.

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Definitions:

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