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The Subjective Approach

Question 280

Multiple Choice

The subjective approach:


A) Can be defined as a stair step method of applying WACC.
B) Is the method of using information from another firm when calculating WACC.
C) Employs pure play strategy.
D) Is defined as the application of one cost of capital rate to all projects under consideration.
E) Is defined as the inclusion of flotation costs in the WACC.

Correct Answer:

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