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Why is the netbook value of FliHi used in calculating the equity beta used in the calculation of cost of equity, when in the question the PE for a proxy company (Rover) has been provided which could be used to calculate the market value of FliHI
DJ
I have no idea where you have found this question!
If it is a past exam question then say the date of the exam (I cannot remember the name of every question there has ever been 🙂 ). Otherwise, if it is a question in the current edition of the BPP Revision Kit then tell me the number of the question.
Thanks noted. The question is taken from BPP KIT( upto June 2014) and is Question 41.
RgdsI am sorry but it is not in the current edition of the BPP Kit and so I cannot help you.
(I do suggest anyway that you buy a current edition because the syllabus has changed since 2014 !!)
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