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Corporations frequently use different costs of capital for various operating divisions. By using an illustration, compute the weighted cost of capital (WACC). prepare down some potential issues in using varying methods for cost of capital for various divisions? If the overall company weighted average cost of capital (WACC) were employed 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 methods which you could use to develop a rough estimate for each division's cost of capital? Your initial response must be 200 to 250 words.

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