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