What is the most accurate way of estimating divisional WACC when a division has a risk level different from that of the firm as a whole?

Select one:

a.

Find a company that specializes in the service that our division provides and estimate its WACC

b.

Use the weighted average cost of capital for the company as a whole as the discount rate

c.

Subjectively adjust our company's weighted average cost of capital for the different level of risk

d.

Calculate the weighted average cost of capital rate for the entire industry