The swiss house is a maker of high quality chocolates the, Ask an Expert

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The Swiss House is a maker of high quality chocolates. The company is considering opening retail outlets. Mgt feels that retailing involves a different set of risks than it's current production operations and is therefore concerned about using the company's WACC as the required return for the project. Given this concern, The Swiss House should:

A) still use it's own WACC as the projects required rate of return

B) use the pure play approach

C) use the overall market rate of return as the projects required rate

D) Use the average of it's WACC and the market rate of return as the projects required rate

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91624447

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