A firm uses its weighted average cost of capital to evaluate the proposed projects for all of its varying divisions. By doing so

Question

3 years ago

10

A firm uses its weighted average cost of capital to evaluate the proposed projects for all of its varying divisions. By doing so

, the firm:A. Automatically gives preferential treatment in the allocation of funds to its riskiest divisionB. Encourages the division managers to only recommend their most conservative projectsC. Maintains the current risk level and capital structure of the firmD. Automatically maximizes the total value created for its shareholders

Business

1 answer:

aliina [53] · Answer 1 · 2022-03-09T21:30:05+03:00

aliina [53]3 years ago

5 0

Answer:

The answer is letter A.

Explanation:

Automatically gives preferential treatment in the allocation of funds to its riskiest division