A company has two divisions, A and B. Division A is riskier than B and thus the WACC for A is 10% while the appropriate WACC for B is 7%. The CFO of the company has selected to use a WACC of 8.5% for all new project proposals whether they originate in Division A or Division B. This will tend to lead to too many of Division A's proposals being accepted and too many of Division B's proposals being rejected.

Group of answer choices

True

False