BPP revision kit Q.23 Amberle

https://opentuition.com/topic/bpp-revision-kit-q-22-tippletine-2/

Based on the discussion above, the sample answer for this case (Amberle) now uses the CAPM model to get the discount rate (12%). This is also acceptable (without the need to ungear the cost of equity) because the CAPM model uses the risk-free rate, and hence, the cost of equity is automatically free of debt element?

Please may I know whether my interpretation above is correct? Thank you.