A project's rate of return should be_________than the weighted marginal cost of financing. Thecumulative acceptance of projects _________the weighted marginal cost of capital.
A) less; increases
B) greater; increases
C) less; decreases
D) greater; decreases

Question

Quizplus · Accepted Answer

A project's rate of return should be greater than the weighted marginal cost of financing to ensure profitability. The cumulative acceptance of projects increases the weighted marginal cost of capital as more funds are required.

A Project's Rate of Return Should Be_________than the Weighted Marginal