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Marine Expeditors has three divisions. Division A is the core of the business and represents 8 0 percent of the firm's operations. Division B is
Marine Expeditors has three divisions. Division A is the core of the business and represents percent of the firm's operations. Division B is involved only with contractual shortterm projects and therefore has about ten percent less risk than Division A Division C develops and markets new products and is about ten percent riskier than Division A and about equal in size to Division B The manager of Division A has suggested that the operations of his division be increased by percent next year. The proposed project should probably be assigned a required return that is equal to percent of the firm's weighted average cost of capital.
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