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Corporations often use different costs of capital for different operating divisions. Using an ex, find out the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divisions? If the overall company weighted average cost of capital (WACC) were used as the hurdle rate for all divisions, would more conservative or riskier divisions get a greater share of capital? describe your reasoning. What are two techniques that you could use to develop a rough estimate for each division's cost of capital?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M970657

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