Question
Division A (Low Risk) WACC = 7% Division B (High Risk ) WACC = 13% 2 division has composite WACC of 12% Division B considering
Division A (Low Risk) WACC = 7%
Division B (High Risk ) WACC = 13%
2 division has composite WACC of 12%
Division B considering a project with expected return = 12%
- Should I accept or reject the project?
- Accept or reject decision base? rejected the return is less than risk based or accept the return is greater thank risk based?
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Financial accounting
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
8th Edition
9780135114933, 136108865, 978-0136108863
