When a manager develops a cost of capital for a specific project based on the cost of capital for another firm that has a similar line of business as the project

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asked Jan 6, 2021 107k views

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Vit Kos · Answer 1 · 2021-01-11T04:43:51+0000

Answer: Pure play

Step-by-step explanation:

A pure play method in finance is an approach that is used to estimate and determine the cost of equity capital of a private company which involves looking at the beta coefficient of other single focused and public companies.

Pure-play companies are the companies that are involved in a single line of business.

When a manager develops a cost of capital for a specific project based on the cost of capital for another firm that has a similar line of business as the project

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