Which of the following statements is FALSE? i) Microsoft has various divisions with different levels...
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Finance
Which of the following statements is FALSE?
i) Microsoft has various divisions with different levels of risk. The financial manager should use Microsofts WACC to evaluate a project in the Xbox division.
ii) A stock can have high volatility but low systematic risk.
iii) A high WACC means that the firm has a low cost of borrowing capital from various lenders.
iv) The firms WACC can be used as a discount rate to evaluate scale expansion projects, which are projects similar to what the firm has been doing.
A.
i, iii
B.
iii
C.
i
D.
ii, iii, iv
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