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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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