Question: RiverRocis (whose WACC is 11.4% ) is considering an acquistion of Rat Adventures (whose WACC is 15.1% ). What is the appropriate discount rate for
RiverRocis (whose WACC is 11.4% ) is considering an acquistion of Rat Adventures (whose WACC is 15.1% ). What is the appropriate discount rate for RiverRocks to use to evaluate the acquishion? Why? The aspoprate dacount rate for RiverRocks to use to evaluate the acquisition is 15. (Round to one decimal place.) Whip (Seied the bett cholce bolow) A. Raft Advertures: WACC is the most appropriale discount rate to account for the risk of Raft Adventures' Cash flows. B. RwecRods' WACC in the most aoproptiate discount rate to account far the tisk of Rafl Adventures' eash fows C. Na average WACC trom Ruverficis and Raft Adventures will best account for the isk of Raft Adventures' cash fows. b. The rak.tree rate wa best account for the risk of Ran Adventures' cash floss since RiverRocks will pay cash for the transaction
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