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Question 17 Conglomerate Inc. has two divisions (e, two lines of business). First division manufactures and sells home appliances and second division sells healthcare products.

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Question 17 Conglomerate Inc. has two divisions (e, two lines of business). First division manufactures and sells home appliances and second division sells healthcare products. Two divisions have different weights and risk profiles where first division holds more risk. What is your advice to management for evaluating divisional projects? O follow a subjective approach to determine the cost of capital allocate funds proportional to division weights O allocate funds to the highest NPV project use weight adjusted WACC O fund projects only belonging to Division A of 20

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