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Business, 25.12.2019 22:31 elijahmaderos25491

riverrocks, whose wacc is 11.3 %, is considering an acquisition of raft adventures (whose wacc is 14.1 %). what is the appropriate discount rate for riverrocks to use to evaluate the acquisition? why?

a.? riverrocks' wacc is the most appropriate discount rate to account for the risk of raft? adventures' cash flows.
b. raft? adventures' wacc is the most appropriate discount rate to account for the risk of raft? adventures' cash flows.
c. an average wacc from riverrocks and raft adventures will best account for the risk of raft? adventures' cash flows.
d. the? risk-free rate will best account for the risk of raft? adventures' cash flows since riverrocks will pay cash for the transaction.

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