Kizspy | Question: 2 (Choose 1 answer)
In order to use a firm's WACC to evaluate its future project's cash flows, which of the following must hold?
A. The project will be financed with the same proportion of debt and equity as the firm.
B. The systematic risk of the project is the same as the overall systematic risk of the firm.
C. The project should have conventional cash flows.
D. The project will be financed with the same proportion of debt and equity as the firm, and the systematic risk of the project is the same as the overall systematic risk of the firm.
