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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