Question
RiverRocks (whose WACC is 12.2%) is considering an acquisition of Raft Adventures (whose WACC is 14.1%). What is the appropriate discount rate for RiverRocks to
RiverRocks (whose WACC is 12.2%) is considering an acquisition of Raft Adventures (whose WACC is 14.1%). 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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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1111021573
