[abduladedokun]

ok Thanks very much

[abduladedokun]

Yah!!! thanks very much…thumb up for you!

[abduladedokun]

In a similar vein Mr Moffat, I know gearing to be debt/debt+equity ,if a question information reads; ”” gearing ratio for Rover Airways,expressed as total debt to total capital(debt plus equity) is 60% and as total debt to total equity is 150% ”’ .which one are we expected to use for the gearing figure in computing the cost of capital and why not the other?
Thanks

[abduladedokun]

Thank you very much Mr Moffat. Your first paragraph has illuminated my troubled mind. Actually I was thinking that the published data is asset beta due to my wrong impression that Sector/industry’s beta is always an asset beta.
But now the guiding principle is…”””’.The betas that are published in the papers are always the equity (geared) betas.
For that reason, in the exam you always assume that betas that are given are equity betas unless you are told otherwise….”””
Thanks once again

[abduladedokun]

this gearing ,ungearing ,degear surely has a technique. but ironically, much as I tried, am still missing them…can anybody help?

[abduladedokun]

i use the system of practicing all d question in bpp kit.To me it seems d best way.touching all questions and by extension, all topics

[Author]

Posts