Business, 21.12.2019 02:31 nonjabulomabaso8371
Conglomerated industries' overall cost of capital (wacc) is 10%. division hr is riskier than average, division ar has average risk, and division lr is less risky than average. conglomerated adjusts for risk by adding or subtracting 2 percentage points. what is the risk-adjusted project cost of capital for a low-risk project in the hr division?
a. 6%
b. 14%
c. 8%
d. 12%
e. 10%
Answers: 3
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