WidgetBaker is considering making an acquisition of RiskyWidgets. Widgetbaker has a WACC of 12.5%, whereas RiskyWidgets has a WACC of 15.0%. The two firms are funded by the same proportions of debt and equity in their capital structure, which will not change as a result of the acquisition. Which of the following best describes the appropriate discount trate to to evaluate the acquisition of RiskyWidgets? Select one: O RiskyWidgets' WACC is the most appropriate discount rate to account for the risk of RiskyWidgets' cash flows O The risk-free rate will best account for the risk of RiskyWidgets' cash flows. O WidgetBaker's WACC is the most appropriate discount rate to account for the risk of RiskyWidgets' cash flows O An average WACC from WidgetBaker and RiskyWidgets will best account for the risk of RiskyWidgets' cash flows