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Kate is the CFO of a major firm and has the job of assinging discount rates to each project that is under construction. Kate's method
Kate is the CFO of a major firm and has the job of assinging discount rates to each project that is under construction. Kate's method of doing this is to assign an incrementally higher rate as the risk level of the project increases over that of the current firm. Likewise, she assigns lower rates as the risk level declines. Which one of the following approaches is Kate using to assign the discount rates?
A. Pure play approach
B. Divisional rating
C. Subjective approach
D. Straight WACC approach
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