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