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Business, 24.06.2021 16:00 oof5221

Marine Expeditors has three divisions. Division A is the core of the business and represents 80 percent of the firm's operations. Division B is involved only with contractual short-term projects and therefore has about ten percent less risk than Division A. Division C develops and markets new products and is about ten percent riskier than Division A and about equal in size to Division B. The manager of Division A has suggested that the operations of his division be increased by 10 percent next year. The proposed project should probably be assigned a required return that is equal to percent of the firm's weighted average cost of capital.

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