Business, 23.04.2021 15:50 mateoperkins

Farmer's Supply, Inc. is considering opening a clothing store, which would be a new line of business for the firm. Management has decided to use the cost of capital of a similar clothing store as the discount rate that should be used to evaluate this proposed expansion. Which one of the following terms is used to describe the approach Farmer's Supply is taking to establish an appropriate discount rate for the project? a. Equity approach
b. Aftertax approach
c. Subjective approach
d. Market play
e. Pure play approach

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