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Question 4 2 pts A company has a WACC of 1 0 % and has several divisions each with different levels of risk. If the

Question

4

2

pts

A company has a WACC of

10 %

and has several divisions each with different levels of risk. If the company uses

10 %

as the cost of capital for the highest risk, the company will:

undervalue the division.

fairly value the division.

overvalue the division

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