If a firm uses the same company cost of capital for evaluating all projects, which situation(s)will likely occur?
I.The firm will reject good low-risk projects;
II.The firm will accept poor high-risk projects;
III.The firm will correctly accept projects with average risk
A)I only
B)I and II only
C)I,II, and III
D)II only

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The Answer of If a firm uses the same company cost of capital for evaluating all projects, which situation(s)will likely occur?
I.The firm will reject good low-risk projects;
II.The firm will accept poor high-risk projects;
III.The firm will correctly accept projects with average risk
A)I only
B)I and II only
C)I,II, and III
D)II only

If a Firm Uses the Same Company Cost of Capital