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Business, 10.12.2021 18:50 josie6471

A firm uses its weighted average cost of capital to evaluate the proposed projects for all of its varying divisions. By doing so, the firm:. a. maintains the current risk level and capital structure of the firm.
b. encourages the division managers to recommend only their most conservative projects.
c. automatically gives preferential treatment in the allocation of funds to its riskiest division.
d. allocates capital funds evenly among its divisions.
e. automatically maximizes the total value created for its shareholders.

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