Question: Rive Rocks, whose WACC is 11.3%, is considering an acquistio of Raft Adventures (whose WACC is 15.5%). What is the appropriate discount rate for RiverRocks

Rive Rocks, whose WACC is 11.3%, is considering an acquistio of Raft Adventures (whose WACC is 15.5%). What is the appropriate discount rate for RiverRocks to use to evaluate the acquisiton? Why The appropriate discount rate for RiverRocks to use to evaluate the acquisitionisRound to one decimal place) Why? (Select the best choice below) Lj. (Round to one decimal place.) O A Raft Adventures: WACC is the most appropriate dscount rate to account for the risk of Raft Adventures' cash fows ? B. The risk-froo rate will best account for the risk of Raft Adventures, cash fows since RherRocks wil pay cash for the transaction. O C. An average WACC from RiverRocks and Raft Adventures will best account for the risk of Raft Adventures' cash flows O D. RiverRocks' WACC is the most appropriate discount rale to account for the risk of Ralt Adventures' cash fows

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