Bobs tractor and party supply has two separate divisions


?Bob's Tractor and Party Supply has two separate? divisions: party? supplies, and tractor supplies and services. The party supply division has a beta of 1.2 and is financed by? 25% debt. The tractor supply and service division has a beta of 0.8 and is financed by? 60% debt. The cost of debt for each division is? 5%. The risk free rate and market rate are? 5% and? 10% respectively. A project has recently become available for each division with an expected return of? 10%. Which? division(s) should take on the? project?

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Financial Management: Bobs tractor and party supply has two separate divisions
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