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What wacc would you use? to evaluate the purchase

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Reference no: EM133002003

Problem 1: If the WACC for the health care division is? 8% and the WACC for the paper products division is? 4%, assuming each division is the same? size, what WACC would you use? to evaluate the purchase of a new line of paper? towels?

a) the cost of the paper products division of 4%
b) the lowest cost of 4% because this is a safe investment
c) the highest cost of 8% to be conservative
d) the average cost of 6%

Reference no: EM133002003

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