Each of the following factors affects the weighted average cost of capital (WACC) equation. Which of the following factors are outside a firm's control? Check all that apply. Tax rate The inflation rate The firmis capital budgeting decision rules The impact of cost of capital on managerial decisions Consider the following case: Marston Manufacturing Company 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 BW it 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 sire, the company has a composite weighted average cost of capital of 11%. Division if is considering a project with an expected return of 12% Should Marston Manufocturing Company accept or rejed the project? lleject the project Accept the project On what grounas do you base your accept-reject deosion? Owivon His project should be accepted, as its return is greater than the rikk bared cost of copital for the division. bivision His project should be rejected since its refum is less than the risk-based cost of cap tal for the divisioni