Question: When firms develop a WACC for individual projects based on the cost of capital for other firms in similar lines of business as the project,

When firms develop a WACC for individual projects based on the cost of capital for other firms in similar lines of business as the project, the firm is utilizing a ____________________.

A)subjective approach

B)security market line approach

C)divisional cost of capital approach

D)capital adjustment approach

E)pure play approach

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