Which of These Is an Estimated WACC Computed Using Some

question 24

Multiple Choice

Which of these is an estimated WACC computed using some sort of proxy for the average equity risk of the projects in a particular division?

• A) Average WACC
• B) Divisional WACC
• C) Proxy WACC
• D) Pure-play WACC

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Definitions:

Economic Development

The process of improving economic well-being and quality of life through growth and development, often through government policies and programs.

North America

A continent in the Northern Hemisphere and almost entirely within the Western Hemisphere; it includes countries such as Canada, the United States, and Mexico.

King George's War

The North American theater of the War of the Austrian Succession (1740-1748) involving French and British colonies.

New England

A region in the northeastern United States known for its colonial history, comprising states such as Massachusetts, Connecticut, Rhode Island, New Hampshire, Vermont, and Maine.