Question 19 (4 points) Listen In analyzing capital budgeting projects, a CFO is required to assign cost of capital to each specific project under review. In this task, the CFO assigns an incrementally higher cost of capital as the risk level of the project increases above the current firm's cost of capital. Conversely, the CFO assigns incrementally lower cost of capital as the risk level of the project declines below that of the firm. This approach is called: 1) Pure play approach 2) Divisional rating 1 3) Subjective approach 4) Straight WACC approach 24 Question 20 (4 points) Listen Kennesaw Corp. has a beta of 1.42 and a standard deviation of 21.6 percent. The market rate of return is 13.5 percent, and the risk-free rate is 6 percent. What is the cost of equity for Pittsburgh Steel Products? O 1) 13.65 percent O2) 14.52 percent 3) 15.65 percent 4) 16.65 percent