Estimating a Divisional Cost of Capital by Comparing the Division

question 18

Multiple Choice

Estimating a divisional cost of capital by comparing the division to a similar free-standing company is known as

• A) Divisional Average Cost of Capital approach (DACC).
• B) Segmental Capital Structure approach. (SCS).
• C) the "pure play" approach.
• D) Project Specific Approach (PSA).

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Definitions:

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