RiverRocks, whose WACC is 12.5%, is considering an acquisition of Raft Adventures (whose WACC is 15.9%). What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why?

Security prices are set by active market participants. which of the following is not a consequnce of this fact? a. the market price will be set by the buyer who can take best advantage of the asset. b. the price is set by the buyer willing to pay the highest price. c. superior information about an asset can increase its value by reducing its risk. d. market participants have a strong incentive to reveal private information about a security.