Question: ABC Buses only equity capital, and it has two equally-sized divisions. Division A's cost of capital is 10.0%, Division B's cost is 14.0%, and the

ABC Buses only equity capital, and it has two equally-sized divisions. Division A's cost of capital is 10.0%, Division B's cost is 14.0%, and the corporate composite) WACC is 12.0%. All of Division A's projects are equally risky, as are all of Division B's projects. However, the projects of Division A are less risky than those of Division B. Which of the following projects should the firm accept? Select one 2. A Division B project with a 12% return. b. A Division A project with a 9% return. C. A Division A project with an 11% return d. A Division B project with a 13% retum. A Division project with an 11% return

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