RiverRocks, whose WACC is 12.9%, is considering an acquisition of Raft Adventures (whose WACC is 14.9%). What
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Question:
RiverRocks, whose WACC is
12.9%,
is considering an acquisition of Raft Adventures (whose WACC is
14.9%).
What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why?
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