Question: please give answer without being rounded and with being rounded Swizer Industries has two separate divisions Division X has less risk so its projects are
Swizer Industries has two separate divisions Division X has less risk so its projects are assigned a discount rate equal to the firm's WACC minus 0.5 percent. Division Y has more risk and its projects are assigned a rate equal to the firm's WACC plus 1 percent. The company has a debt-equity ratio of 0.7 and a tax rate of 35 percent. The cost of equity is 152 percent and the aftertax cost of debt is 6.6 percent What discount rate should be assigned for Division X and for Division Y? Division X% Division Y-% Allowed attempts-3 Check
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