Which of the Following Statements Is Correct

question 96

Multiple Choice

Which of the following statements is correct?

• A)If a new project is riskier than the firm's existing projects, then it should be expect to be "charged" a higher cost of capital than the firm's overall WACC.
• B)If a new project is riskier than the firm's existing projects, then it should be expect to be "charged" a lower cost of capital than the firm's overall WACC.
• C)The project's risk and the cost of capital to which it is compared are independent.
• D)None of these answers is correct.

---

Definitions:

Target Employers

Companies or organizations that an individual specifically aims to work for because of aligning interests, values, or career goals.

Prescreening

The process of evaluating candidates or conditions beforehand to ensure certain criteria are met.

Recruiters

Individuals or agencies that seek out, screen, and hire candidates for job positions.

Hiring Agency

A specialized firm that assists businesses in finding and recruiting employees.