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What’s the difference between project specific wacc and wacc of company that is if it operates in more than 1 divsion.
It is not restricted to the situation where there is more than 1 division.
The WACC of the company is the overall cost of borrowing (and therefore the overall return required) for the company and is determined by the overall level of risk in the company.
The company specific WACC is determined by the risk and gearing in the particular project being considered and is therefore the return required from the particular project.
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