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Itchy and Scratchy Inc. has two divisions in separate industries, but uses its WACC as the discount rate for all proposed projects. The safer division

Itchy and Scratchy Inc. has two divisions in separate industries, but uses its WACC as the discount rate for all proposed projects. The safer division within the firm will tend to: grow faster than if the division's cost of capital were used. receive more project funding than that of the other division. have equal probability of receiving funding as compared to the other divisions. reject projects that should be accepted. accept too many projects.

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