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If a firm is acquiring a company that operates in a different line of business from its own and will continue to finance it with

If a firm is acquiring a company that operates in a different line of business from its own and will continue to finance it with the same proportions of debt and equity, which of the following is the most appropriate cost of capital to use when evaluating this project?

A. The WACC for the acquired business

B. The firms' own equity cost of capital

C. The firm's own WACC

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