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Examveda

In pure play method, a company can calculate its own cost of capital with help of averaging an

A. other company capital policy

B. other company beta

C. other company cost

D. other division cost

Answer: Option B

Solution(By Examveda Team)

In pure play method, a company can calculate its own cost of capital with help of averaging an other company beta. Pure play method is an approach used to estimate beta coefficient of a company whose stock is not publicly traded.

This Question Belongs to Commerce >> Financial Management

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