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Multidivisional companies with diverse operations should use an interest rate for discounting a specific division's estimated cash flows in capital budgeting that is representative of:
Multidivisional companies with diverse operations should use an interest rate for discounting a specific division's estimated cash flows in capital budgeting that is representative of:
a. | the riskiness of the specific division's cash flows. | |
b. | the cost of capital obtained through the application of the pure play method. | |
c. | Either b or c | |
d. | the entire firm's cost of capital |
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