Required rate of return to evaluate projects

Reference no: EM13789863

Videlectrix Co. has two divisions: one is very risky, and hte other has significantly less risk. The company uses its investors' overall required rate of return to evaluate projects. It is most like that the firm will become:

Riskier over time, and its value will increase
Riskier over time, and its value will decrease
Less risky over time, and its value will increase
Less risky over time, and its value will decrease

Reference no: EM13789863

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