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Suppose your firm has decided to use a divisionai WACC approach to analyze projects. The firm currently has four divisions, A through D , with
Suppose your firm has decided to use a divisionai WACC approach to analyze projects. The firm currently has four divisions, A through D with average betas for each division of and respectively. If all current and future projects will be financed with half debt andinaff equity, and if the current cost of equity based on an average firm beta of and a current riskfree rate of percent is percent and the aftertax yield on the company's bonds is percent, what are the WACCs for divisions A throuigh D
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