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Lorenzo's publishing company has several divisions, including one that is dedicated to children's picture books. When considering a new project for that division, Lorenzo looks

Lorenzo's publishing company has several divisions, including one that is dedicated to children's picture books. When considering a new project for that division, Lorenzo looks at the cost of capital for several publishing companies that only put out children's picture books. What is Lorenzo using? 


Pure play approach


 Cost of capital approach 


Pure capital approach 


Subjective approach

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