1. what is the best division to invest? 2. Why are the Cost of Equity requested by...
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Question:
1. what is the best division to invest?
2. Why are the "Cost of Equity" requested by investors by division different? In what case would they be the same?
3. why banks ask for different credit rate?
when
BL = Beta levered --> that is used for the calculation of the cost of equity
BU = Beta unlevered
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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