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You are running a company with two divisions. One division is high risk and the other division is low risk. Two Divisions Criteria Cost of

You are running a company with two divisions. One division is high risk and the other division is low risk.

Two Divisions Criteria Cost of Capital Expected Return on Proposed Projects High risk division 10% 9% Low risk division 6% 7% Company average 8% [blank]

Which division should get additional funding for its proposed projects? Why?

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