Question: Question 10 0.5 pts Silver Shamrock has traditionally employed a firm wide discount rate for capital budgeting purposes. However, its two divisions publishing and entertainment-have

Question 10 0.5 pts Silver Shamrock has traditionally employed a firm wide discount rate for capital budgeting purposes. However, its two divisions publishing and entertainment-have different degrees of risk given by BP-1.0,GE-20, and the beta for the overall form is 1.3. The firm is considering the following capital expenditures Proposed Project initial Investment IRR P1 SIM 130 Publishing P2 $3M 121 P3 $2M 090 E 1 S4M 160 Entertainment E2 56M 170 E3 S5M 140 Use 6% as the risk-free rate and 12% as the expected return on the market. What is the appropriate cost of capital to evaluate a project for Publishing division which projects would this benchmark is used for Publishing division? None of the options 12%. P1 and P2 18. Accept no project in this division O 10. Acceptno proiect in this division OBX P1, P2 and 3

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