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25. A firm estimates its cost of equity using different approaches as follows. Method Estimate % CAPM 12.45 DCF 13.67 Rp + RP 12.22 The

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25. A firm estimates its cost of equity using different approaches as follows. Method Estimate % CAPM 12.45 DCF 13.67 Rp + RP 12.22 The average cost of equity for this form is OA) 12.34% OB) 12.78% OC) 12.87% O D) 12.95% O E) 13.06% Question 24 1 pts 24. Consider the following figure. If firm A were to use the average or composite WACC it would Rate of Return Division HS WACC WACC 130 110 Project 100 Composite WACC Firm 90 - Project 70 Division L's WACC Risk O DO Ris O A) accept both Project L and Project H O B) reject both Project L and Project H O C) accept Project Land reject Project H OD) accept Project H and reject Project L O E) be making the right decisions on acceptance or rejection of both projects

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