Question: Which of the following are problems with using a single cost of capital in a multi - division company? Multiple select question. Lower - risk

Which of the following are problems with using a single cost of capital in a multi-division company?
Multiple select question.
Lower-risk divisions are allocated too little capital.
Lower-risk divisions reject worthwhile investments.
Higher-risk divisions accept uneconomic investments.
Higher-risk divisions are allocated too much capital.

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