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GenCorp. uses only equity capital, has two divisions of equal size, and has no debt or preferred shares. The corporate (composite) WACC is 12.0%, Division
GenCorp. uses only equity capital, has two divisions of equal size, and has no debt or preferred shares. The corporate (composite) WACC is 12.0%, Division One's cost of capital is 10.0%, and Division Two's cost is 14.0%. Which of the following projects shoule GenCorp. select?
Group of answer choices:
Division Two project with a 12% return.
Division One project with an 11% return.
Division One project with a 9% return.
Division Two project with an 11% return.
Division Two project with a 13% return
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