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Dave Inc.'s cost of capital is 10%. The company has provided you with a summary of its annual reports from two of its divisions: Division
Dave Inc.'s cost of capital is 10%. The company has provided you with a summary of its annual reports from two of its divisions: Division A Division B Capital invested $7,475 $10,275 Net income $915 $1,985 At what cost of capital would both divisions be considered equally profitable (having the same residual income)? Enter your answer as a number with two decimal places. For example, 35% becomes 0.35
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