Which of the following is not a good reason to use, Ask an Expert

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Which of the following is NOT a good reason to use divisional costs of capital?

a. Divisional costs of capital require less time and effort to estimate than individual project costs of capital.

b. Divisional costs of capital reduce the latitude of divisional managers in deciding which projects to accept.

c. Divisional costs of capital may be estimated by comparing divisions to the most similar free standing companies which may have different capital structures.

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Category:- Basic Finance
Reference No.:- M942698

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