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If a Company Invests in a Project with an Internal

Question 41

Multiple Choice

If a company invests in a project with an internal rate of return higher than the company's cost of capital, the project should:


A) Decrease the market value of the company's stock
B) Have little or no effect on the market value of the company's stock
C) Increase the market value of the company's stock
D) Reduce the weighted average cost of capital

Correct Answer:

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