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Assume a manager determines the cost of capital for a specific project based on the cost of capital at another firm with a line of

Assume a manager determines the cost of capital for a specific project based on the cost of capital at another firm with a line of business that is similar to the project. Accordingly, the manager is using the ________ approach.

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  • divisional cost of capital

  • capital adjustment

  • pure play

  • security market line

  • subjective risk

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