CAPM and MM Combined (part a)

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  1. Avatar of Matseliso Matseliso says:
    May 8, 2013 at 5:20 pm

    can I download these lectures

  2. Avatar of Ken Ken says:
    June 25, 2012 at 11:46 pm

    very nice.thanks again

  3. Avatar of jonathan83 jonathan83 says:
    June 9, 2012 at 6:19 pm

    Hi Stacy, , you get $1.39 because of in your workings you wrote 14.8-0.03 . it should be 0.148- 0.03 instead. try it , you will realize it, common mistake when we do it fast…

    cheerios

  4. Avatar of staceyhowe staceyhowe says:
    June 9, 2012 at 2:29 pm

    In your 1st example I can not get $1.75 no matter what I do all I keep getting $1.39. What am I doing wrong?

  5. Avatar of funlover funlover says:
    November 30, 2011 at 12:03 pm

    Here return to shareholders, E(ri) is equal to cost of capital of the new project.

    I thought the question was asking for the minimum cash flow requirement in perpetuity for the project to be acceptable, in that case nearly 13,000 will give npv is zero, where project can be accepted.On that basis, 15,000 pa for ever is acceptable straight away as it gives a NPV of 15385 positive.

    A nice example to integrate investment appraisal and CAPM.

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