Solution-Firm policy of assigning required returns

Firm policy of assigning required returns

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Reference no: EM131412833

Kelsey Foods has a company weighted average cost of capital (WACC) of 12.4 percent. Based on this WACC, the firm assigns a required return of 14.5 percent to risky projects, 12.4 percent to projects related to the expansion of the firm's current operations, and a required return of 11 percent to new, low-risk projects. Which one of the following terms best describes this ?firm's policy of assigning required returns

Reference no: EM131412833

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Firm policy of assigning required returns

Reference no: EM131412833

Reference no: EM131412833

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