A project’s rate of return should be _________ than the weighted marginal cost of financing. The cumulative acceptance of projects _________ the weighted marginal cost of capital.
A. less; increases
B. less; decreases
C. greater; increases
D. greater; decreases
Answer:C
A project’s rate of return should be _________ than the weighted marginal cost of financing. The cumulative acceptance of projects _________ the weighted marginal cost of capital.
A. less; increases B. less; decreases C. greater; increases D. greater; decreases