Which One of the Following Is Most Apt to Cause

question 83

Multiple Choice

Which one of the following is most apt to cause a wise manager to increase a project's cost of capital? Assume the firm is levered.

• A)Management decides to issue new stock to finance the project.
• B)The initial cash outlay requirement is reduced.
• C)She learns the project is riskier than previously believed.
• D)The aftertax cost of debt just decreased.
• E)The project's life is shortened.

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