Question: a ) Tom Cruise selected Universal Studios as a comparable firm to estimate the cost of capital for his film production company, Cruise / Wagner

a) Tom Cruise selected Universal Studios as a comparable firm to estimate the cost of capital for his film production company, Cruise/Wagner Productions. If the chosen comparable firm Universal Studios was a pure player with a single line of business, its equity beta should be used without further adjustment to estimate the cost of capital for the Cruise/Wagner Productions. true or false

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