Vidyalelo
Commerce · Q440

Financial Management

Graduate and Post Graduate · Commerce · question 440

Q440

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
Answer
C.
other company cost
D.
other division cost

Answer: Option B

Solution

Answer: Option B
Solution:
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.