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QUESTION
Because the WACC varies with the use of funds rather than the source of funds, some firms evaluate new projects by sorting projects into risk
Because the WACC varies with the use of funds rather than the source of funds, some firms evaluate new projects by sorting projects into risk classes, and add or subtract adjustment factors from the WACC. This approach is called the
A. subjective approach.
B. divisional approach.
C. DuPont approach.
D. pure play approach
