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RiverRocks, whose WACC is 11.8%, is considering an acquisition of Raft Adventures (whose WACC is 14.7%). What is the appropriate discount rate for RiverRocks to

RiverRocks, whose WACC is

11.8%,

is considering an acquisition of Raft Adventures (whose WACC is

14.7%).

What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why?

The appropriate discount rate for RiverRocks to use to evaluate the acquisition is

%.

(Round to one decimal place.)

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