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Hi, I just needed some clarity. I just wish to know how/when to use them because both seem to deal with ungeared and geared equity. Any response would be helpful for me. Thank you.
As I do state in my free lecture you could use either approach and you would end up with the same answer (because the asset beta formula is derived from M&M).
However rather than waste time in the exam, if you are given beta’s then use CAPM. If you are not given betas then use M&M proposition 2.
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