When using a pure approach to a proposed investment, the company's primary goal is a return based on actual funding sources.
A pure playful approach. Use of WACC specific to specific projects based on companies in similar business lines. Used to find: Estimated beta coefficients for companies whose shares are not listed.
The Pure Play approach uses WACC specific to projects based on other companies in similar business lines. This can be used when companies are considering projects outside their current operations (new lines of business) and estimating the required return on new investments.
Pure Play companies are public companies that focus all of their resources and efforts on one area of activity. A stock's performance is highly correlated with the performance of its industry or sector.
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