What about projects that are not average?

What about projects that are not average?



Answer: A WEIGHTED-AVERAGE COST OF CAPITAL can still be used as a benchmark. The appropriate benchmark (or project cost of capital) must use the cost of equity that reflects the risk of the project and incorporate the appropriate mix of debt and equity financing for the project.

Comments

Popular posts from this blog

Examine the collapse of Han. What factors explain how this occurred? How influential in Han Dynasty on Chinese History?

JAD Advantages and Disadvantages

Summarize effective communication strategies in organizational hierarchies, and review the role and relevance of the organizational grapevine