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Why might a company choose a required rate of return higher than the cost of equity? (a) to penalize the investment manager (b) to offset the optimism bias of the investment manager (c) to limit the benefit to shareholders (d) to reduce the number of projects accepted
Why might a company choose a required rate of return higher than the cost of equity?
(a) to penalize the investment manager
(b) to offset the optimism bias of the investment manager
(c) to limit the benefit to shareholders
(d) to reduce the number of projects accepted
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