Question: What is the pure-play approach? Multiple choice question. Finding a firm (or firms) that are in the same line of business as a new project

What is the pure-play approach? Multiple choice question. Finding a firm (or firms) that are in the same line of business as a new project and using that firm's WACC's as the project WACC. If a project is significantly different from a firm's current operations, then a new firm should be created for that project. Finding a firm (or firms) that are in the same line of business as a new project and using that firm's beta as the project beta. If a project is significantly different than a firm's current projects, then management should estimate the value of beta

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