Question: RiverRocks ( whose WACC is 1 2 % ) is considering an acquisition of Raft Adventures ( whose WACC is 1 5 % ) .

RiverRocks (whose WACC is 12%) is considering an acquisition of Raft Adventures (whose WACC is 15%). Is 12% the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Yes No

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