Explain why the divisional cost of capital approach may cause problems if new projects are assigned to

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Explain why the divisional cost of capital approach may cause problems if new projects are assigned to the wrong division.

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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