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Jeff Bezos tas just promoted you to Chief Financial Officer of Amazon. You find on your desk plans for Amazon's latest project to comer the

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Jeff Bezos tas just promoted you to Chief Financial Officer of Amazon. You find on your desk plans for Amazon's latest project to comer the paper chip market by Buying the world's largest paper clio manufacturing company. Your financial analysts have determined that this project will be a lot less risky than any of Amazon's other current operation since paper clips will probably continue to be used at the current level well into the foreseeable future You were not able to find a pure play paper clip compaty during your analysis. Amazon's overall WACCE 10%. Which of the following would be a reasonable course of action to take Multiple Choice Take 3 percentage points of the company's overall WACC, since this project is less risky than Amazon's overall operations. Use 10% as the project's WACC, since risk does not play a role in WACC Add 3 percentage points to the company's overall WACC because lower risk would lead to a higher WACC O A pure play company could not be found, so add 1 percentage point to the company's overall WACC Just to be on the safe side Both A and D are reasonable courses of action for you to take

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