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Suppose BYM Inc.'s CFO has mistakenly estimated its WACC as 10% when it should be...

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Suppose BYM Inc.'s CFO has mistakenly estimated its WACC as 10% when it should be 12%. When the CFO uses the wrong WACC as the benchmark to evaluate all projects, what will mostly like to happen? a) The CFO will mistakenly accept some low risk projects, and mistakenly rejects some high risk projects. b) The CFO will mistakenly rejects some low risk projects, and mistakenly accepts some high risk projects. c) The firm will have a lower intrinsic value. d) This is not an important issue, as there are many investment opportunities that offer returns between 10% and 12%. e) The firm might have a higher intrinsic value, as the discount rate is lower now

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