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When considering the hurdle rate for a division within a corporation, one may ____ for projects that have risk similar to that of the corporation.
When considering the hurdle rate for a division within a corporation, one may ____ for projects that have risk similar to that of the corporation. Complete the sentence by selecting the single best available answer from those presented below.
a. apply a beta of one to the computation of the appropriate discount rate
b. apply a high beta to computation of the appropriate discount rate
c. directly apply the corporate WACC
d. subjectively reduce the corporate WACC discount rate
e. subjectively increase the corporate WACC discount rate
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