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The new Risky Enterprises division of Bigco will have a higher market risk than the rest of Bigco, but the costs of the division will

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The new Risky Enterprises division of Bigco will have a higher market risk than the rest of Bigco, but the costs of the division will be initially funded by debt, because a large amount of debt has just been issued. Of the following ways to determine the required return on the Risky Enterprises division, which would be best? Use the subjective approach to find a new required rate of return Use the risk-augmented approach fo find a new required rate of return. o Use the WACC rate applicable to the rest of the company, with no adjustments. Use the unallocated pure investment approach to find the required rate of return

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