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A firm has two divisions and an overall WACC of 10%. Risky Division has a WACC of 15%. Safe Division has a WACC of 5%.

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A firm has two divisions and an overall WACC of 10%. Risky Division has a WACC of 15%. Safe Division has a WACC of 5%. Safe Division has a new project that is similar to their usual projects. What rate should they use when evaluating the new project? O 10% since this is the firm's WACC. O 5% since the project is within the Safe Division O 15% since the Safe Division wants to be very cautious

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