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Business, 29.10.2019 07:31 jwbri

Bloom and co. has no debt or preferred stock it uses only equity capital, and has two equally sized divisions. division x's cost of capital is 10.0%, division y's cost is 14.0%, and the corporate (composite) wacc is 12.0%. all of division x's projects are equally risky, as are all of division y's projects. however, the projects of division x are less risky than those of division y. which of the following projects should the firm accept?

a. a division y project with a 12% return.

b. a division x project with an 11% return.

c. a division x project with a 9% return.

d. a division y project with an 11% return.

e. a division y project with a 13% return.

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