Question: D Question 7 10 pts A firm has a three divisions, Division 1. Division 2, and Division 3. Divisions 1 and 2 represent 32% and
D Question 7 10 pts A firm has a three divisions, Division 1. Division 2, and Division 3. Divisions 1 and 2 represent 32% and 23% of the firm's value, respectively. The firm's WACC is 9.1%, Division 1's WACC is 10,2%, and Division 2's WACC is 5.4%. Neither the divisions, nor the firm as a whole have any debt or preferred stock (l.e: their capital structures are pure equity). If the risk free rate is 3.4%, and the Market Risk Premium is 6.4%, what is the WACC of Division 3? Enter your answer as a percentage, without the percent "%' sign, and rounded to 1 decimal
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