What will happen if a typical company uses the same cost of capital to evaluate all projects?
A) The firm will likely become riskier over time, but its intrinsic value will be maximized.
B) The firm will likely become riskier over time, and its intrinsic value will not be maximized.
C) The firm will likely become less risky over time, and its intrinsic value will not be maximized.
D) The firm will likely become less risky over time, and its intrinsic value will be maximized.
Correct Answer:
Verified
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