BN Unicorn, a producer of smartphones, is considering expanding its business into the PC market. To evaluate the cost of capital for the proposed PC division, BN's managers consider looking at two of their competitors, ABC PC, which produces and markets PCs only, and UniTech, which is diversified across various lines of business, including both smartphones and PCs. Which of the two is more appropriate to use when estimating the cost of capital for the proposed PC division? Explain your answer.