Please identify which of the following examples is a correct application of the 'Subjective Approach' to estimate a divisional WACC:

A. Ronnie wants to find the cost-of-capital of Apple's AI division. Ronnie, first evaluates Apple's WACC and then adjusts their WACC +3% upward to estimate an AI division WACC, as he feels the AI devision is risker (but with more upside) than the firm as a whole.

B. Ronnie wants to find the cost-of-capital of Apple's AI division. Ronnie, first evalutes MSFT's WACC and applies it to Apple's AI division as MSFT is Apple's main competitor and has a more reliable WACC estimate.

C.Ronnie wants to find the cost-of-capital of Apple's AI division. Ronnie, first evalutes MSFT's WACC and applies it to Apple as MSFT is their main competitor and has a more reliable WACC estimate. Then, he subjectively adjusts the WACC upward +3% to factor in the higher risk of Apple's AI division versus the firm as a whole

D. None of the above are a correct application of the 'Subjective Approach' to estimate a division's WACC.