Corporate Investment and Finance
Assume that a company uses one discount rate for all projects. ; This company has one division building duplexes close to universities and another division that makes and distributes food products. ; Which division should be awarded a higher cost of capital? ; Please explain.
Assume that a company uses one discount rate for all projects. ; This company has one division building duplexes close to universities and another division that makes and distributes food products. ; Which division will get the money if this company does not move to a divisional cost of capital for each division? ; Please explain.
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