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onglomerated Industries' overall cost of capital (WACC) is 10%. Division HR is riskier than average, Division AR has average risk, and Division LR is less

onglomerated Industries' overall cost of capital (WACC) is 10%. Division HR is riskier than average, Division AR has average risk, and Division LR is less risky than average. Conglomerated adjusts for risk by adding or subtracting 2 percentage points. What is the risk-adjusted project cost of capital for a low-risk project in the HR division? a. 8% b. 12% c. 14% d. 6%

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