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Conglomerated Industries' overall cost of capital (WACC) is 10%. Division HR is riskier than average, Division AR has average risk, and Division LR is less

image text in transcribedConglomerated Industries' overall cost of capital (WACC) is 10%. Division HR is riskier than average, Division AR has average risk, and Division LR is less risky than average. Conglomerated adjusts for risk by adding or subtracting 2 percentage points. What is the risk-adjusted project cost of capital for a low-risk project in the HR division?

conglomerated Industries overall cost of capital (WACC) is 10%. Division HR is riskier than average, Division AR has average risk, and Division LR is less risky than average. Conglomerated adjusts for risk by adding or subtracting 2 percentage points. What is the risk-adjusted project cost of capital for a low-risk project in the HR division? 0 a. 6% O b. 14% . 8% d. 12% e. 10%

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