In Which of the Following Cases Would It Most Likely

question 272

Multiple Choice

In which of the following cases would it most likely be appropriate to use the WACC that relates to existing operations?

• A) A pizza delivery service is planning to expand by adding a sit-down pizza restaurant.
• B) A grocery store owner is considering adding a bakery and a delicatessen to his store.
• C) A gas tank manufacturer is contemplating switching to manufacturing tie-outs for dogs.
• D) A gas station owner is considering adding a convenience store.
• E) A manufacturer of garbage bags is considering expanding production capacity to meet increasing demand.