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Title: If a project has a higher proportion of fixed to variable costs, holding the risk of its revenues ... Post by: johnpaech on Nov 20, 2017 If a project has a higher proportion of fixed to variable costs, holding the risk of its revenues constant:
A) its beta will be lower, hence its cost of capital will be lower. B) its beta will be higher, hence its cost of capital will be higher. C) its beta will be unaffected, since beta does not measure the sensitivity of the project's cash flows to market risk. D) its financial leverage will be higher. Title: Re: If a project has a higher proportion of fixed to variable costs, holding the risk of its ... Post by: EgorGruzdev on Nov 20, 2017 Content hidden
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