Question: 9 You are working for a company that does 2 things: makes paper clips and explores for oil. You are the financial manager of the

9 You are working for a company that does 2 things:

9 You are working for a company that does 2 things: makes paper clips and explores for oil. You are the financial manager of the paper clip division, which is far less risky than the oil exploration division. You are considering building a new paper clip factory, and will do a DCF analysis. Which of the following is the worst decision you could make regarding what the project's required rate of return is? Multiple Choice Use the company's overall WACC Use the Pure Play method Use the Subjective method

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