Question: Given AES's pyramid ownership structure, does the 1 2 % discount rate ( applied to dividends at the parent company level ) properly reflect the

Given AES's pyramid ownership structure, does the 12% discount rate (applied to dividends at the parent company level) properly reflect the overall group leverage? In particular, does the 12% discount rate result in the projects' hurdle rates (at the subsidiary level) that are likely too high or too low? Explain briefly.

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