What might be reasonable costs of capital for average-
Suppose a firm estimates its WACC to be 10%. Should the WACC be used to evaluate all of its potential projects, even if they vary in risk? If not, what might be "reasonable" costs of capital for average-, high-, and low-risk projects?
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emily patrick 36 paradise road northampton ma 01060 formed teal corporation a number of years ago with an investment of
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suppose a firm estimates its wacc to be 10 should the wacc be used to evaluate all of its potential projects even if
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you would like to develop an office building your analysts forecast that it will cost you immediately time 0 and it
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