Consider a company with diversified operations that has divisions whose opertions carry different levels of risk. A manger of one of the divisions is analyzing an investment project, and he believes that his division's level of risk is different than the company's overall level of risk. He knows he cannot use the company's overall WACC as the division's project's WACC, so he decides to look for competitors who ONLY do the same thing as his division. What is the approach to determining WACC called?

Multiple Choice

• The Scientific Method

• The Subjective Approach

• Guessing

• The Pure Play Approach