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johnpaech johnpaech
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6 years ago
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.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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EgorGruzdevEgorGruzdev
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#1
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6 years ago
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johnpaech Author
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6 years ago
Thank you, thank you, thank you!
emilyas19
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Yesterday
This helped my grade so much Perfect
djeghri
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2 hours ago
Correct Slight Smile TY
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