2012 june q4

This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
October 26, 2014 at 4:18 pm #206098
jess
Member
- Topics: 36
- Replies: 19
1.217=component asset beta x 0.25 + 1.078 x 0.75
the weighting is based on market value of different part of operation. The market value should be equity+debt or equity only?
October 27, 2014 at 5:09 pm #206244
John Moffat
Keymaster
- Topics: 57
- Replies: 54839
Strictly it should be on the equity market values if there was no debt in the company. However to calculate this gets very messy and in the exam use the equity market values as they are (the question says that 75% of the equity is in one and 25% in the other).
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.