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Each of the following factors affects the factors are outside a firm's control? Check all that apply. weighted average cost of capital (WACC) equation. Which

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Each of the following factors affects the factors are outside a firm's control? Check all that apply. weighted average cost of capital (WACC) equation. Which of the following The firm's capital structure Tax rate The inflation rate The impact of a firm's cost of capital on managerial decisions Consider the following case: Acme Manufacturing Corporation has two divisions, L and H. Division L is the company's low-risk division and would have a weighted average cost of capital of 8% if it was operated as an independent company. Division H is the company's high-risk division and would have a weighted average cost of capital of 14% if it was operated as an independent company. Because the two divisions are the same size, the company has a composite weighted average cost of capital of 11%. Division L is considering a project with an expected return of 9.5%. Should Acme Manufacturing Corporation accept or reject the project? O Accept the project O Reject the project On what grounds do you base your accept-reject decision? O Division 's project shouid be accepted. becouse its return is less than the risk-based cost of capital for the owsisn ys proeca sthoud tbe accosd i eturn is greater thon the risk-based cost of capital tor the division division

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