Economics · Cost of Capital
Which factor would most likely justify a public company using a discount rate that is lower than its typical WACC when evaluating a new project?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The project has a higher Beta than the company's current average Beta.
- 2The project will be entirely financed by retained earnings.
- 3The project carries less systematic risk than the company's existing operations.✓
- 4The project has a longer payback period than the company's average project.
Correct answer
The project carries less systematic risk than the company's existing operations.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Cost of Capital MCQs →Want more practice questions on Cost of Capital?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Cost of Capital