Which one of the following examples is a correct application of the 'Pure Play' approach to estimate divisional WACCs?

a Sally's Salons owns a makeup subsidiary, which is called Mari's Makeup. Mari's Makeup is compared to MAC cosmetics, a large cosmetic company, to estimate its divisional WACC, as Mari's Makeup is within the makeup (cosmetics) industry rather than the retail (nail salons) industry.

b

John's Trucks is compared to Arthur's Aviation to estimate the WACC of John's Trucks. This was done because John's Trucks is privately traded, and Arthur's Aviation is public, and both are within the transportation industries.

c

Fake Book's WACC was hard to compute as their internal data had apparently been hacked by KGB spies, so instead the WACC of another large technology firm, MICROSHIFT, was used.

d

T-Mobile's WACC was found to be 12.3. We are interested in valuing AT&T, and know that the business' are almost identical in purpose, technology and but feel that AT&T is slightly less risky for various reasons, so we subjectively estimate AT&T's WACC to be 11.3%.