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how did you get your answer? Each of the following factors affects the welghted average cost of capital (wacC) equation. Which of the following factors

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Each of the following factors affects the welghted average cost of capital (wacC) equation. Which of the following factors are outaide a firm's controh? Cheok all that apply. The general level of stock prices The effect of the tax rate on the cost of debt in the weighted average cost of capital equation The firm's dividend payout ratio The impact of cost of capital on managerial decisions Consider the following case: Anderson Animations Corponation (GAC) has two divisions, Land H. Olvision Lis the company's low-risk division and would have a weighted average cost of capital of b9s if it was operated as an independent company. Oivision H is the company's high-risk division and would have a weighted average cost of capital of 44% if it was operated as an independent company. Because the two divisions are the same size, the company has a compoilte weighted average coit of capital of 11%. Oivision H is considering a oroject with an expected return of 12% Shouid Andersan Animations Corporation (AAC) accest or relect the project? Acceot the sroject Palect the sroject On what grounds do you base your accept-reject deciston? Civision H's prolect ahould be scepted, as is retum is greater than the tilebsased colt of capital for the division

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