What is the best reason to calculate a divisional WACC? a. All of the other three possible
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Question:
What is the best reason to calculate a divisional WACC?
a. All of the other three possible answers are correct statements.
b. If the divisions' asset betas differ, the divisional WACCs will differ.
c. The risk of a project in one division may differ from the risk of a project in another division.
d. The matching principle states that you should match the discount rate to the riskiness of the project's cash flows.
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