National Petroleum Refiners should 1. Accept or Reject? the Division H's project because its return is 2. Greater than, or the same as, or less than? the risk- based cost of capital for the division.

Each of the following factors affects the weighted average cost of capital (WACC) equation. Which are factors that a firm cannot control? Check all that apply. Interest rates in the economy Tax rates The firm's capital structure The general level of stock prices The impact of cost of capital on managerial decisions National Petroleum Refiners Corporation has two divisions, L and H. Division L is the company's low-risk division and would have same size, the company has a composite weighted average cost of capital of 12%. Division H is considering a project with an expected return of 13%. National Petroleum Refiners Corporation should the Division H s project because its return is the risk-based cost of capital for the division