Target is thinking about opening one hundred new super discount stores focusing only on consumer...
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Target is thinking about opening one hundred new super discount stores focusing only on consumer staples like cleaning supplies and simple groceries. These stores will likely be less risky than normal Target stores that also sell consumer discretionary goods like electronics. What WACC should Target use to evaluate these new stores? The same WACC as new projects cannot change a company's WACC A lower WACC since the new stores will likely be less risky than Target's current business A higher WACC since the new stores will be brand new A WACC of zero since these are a new stores for Target Not enough information to decide
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