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

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

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