What Are Some Advantages of the Subjective Approach to Determining

question 7

Essay

What are some advantages of the subjective approach to determining the cost of capital and why do you think that approach is utilized?

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Definitions:

Service

An intangible commodity that involves providing labor or helpful activities to others without producing physical goods.

Intangible Activity

Economic or business activity that is not physical in nature, often related to services, knowledge, or intellectual property.

Tangible

Physical objects or assets that can be seen, touched, and measured.

Physical

is related to material things or bodies rather than the mind or spirit, often used in terms of physical properties or possessions.