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Suppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A through D, with average

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Suppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A through D, with average betas for each division of 0.9, 11, 13, and 1.5, respectively. Assume all current and future projects will be financed with 30 percent debt and 70 percent equity, the current cost of equity (based on an average firm beta of 12 and a current risk-free rate of 5 percent) is 13 percent and the after-tax yleld on the company's bonds is 10 percent. What will the WACCs be for each division? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) WACCS Division A Division B % Division C Division D % %

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