Vanguard has an overall (composite) wacc of 10%, which reflects the cost of capital for its average asset. its assets vary widely in risk, and vanguard evaluates low-risk projects with a wacc of 8%, average-risk projects at 10%, and high-risk projects at 12%. the company is considering the following projects: col1 project a b c dcol2 risk high average high low col3 expected return 15% 12% 11% 9%which set of projects would maximize shareholder wealth?

The projects which maximize Vanguard's shareholder wealth are Project A; Project B; Project D.

Explanation:

Projects which maximize the shareholder value are projects delivering Expected Returns which are higher than its risk-adjusted weighted average cost of capital (WACC).

As a result, Project A with Expected return of 15% and risk adjusted WACC of 12%; Project B with Expected return of 12% and risk adjusted WACC of 10%; Project D with Expected return of 9% and risk adjusted WACC of 8%; are the projects that maximize the shareholder's value.

On the other hand, Project C with Expected return of 11% and risk adjusted WACC of 12% is harmful to shareholder value.

answer; /// i believe that the correct answer is (b) money set aside for emergency repairs;