Cost of capital based on another firms project

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Reference no: EM1343353

Cost of capital based on another firm's project

When a manager develops a cost of capital for a specific project based on the cost of the capital for another firm which has a similar line of business as the project the manager is utilizing the ______________approach

1. subjective risk
2. pure play
3. divisional cost of capital
4. capital adjustment
5. security market line

Reference no: EM1343353

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