When a manager develops a cost of capital for a specific project based on the cost of capital for another firm that has a similar line of business as the project

Pure play

Explanation:

A pure play method in finance is an approach that is used to estimate and determine the cost of equity capital of a private company which involves looking at the beta coefficient of other single focused and public companies.

Pure-play companies are the companies that are involved in a single line of business.

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