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first of all thank you all for this great work ,you are really helping us
second :in the first question of morada (b section ),why in determing the cost of equity ,beta equity was used in CAPM , other than using unlevereged un geared beta
thanks
The answer is calculating the WACC by weighting the cost of equity and the cost of debt in the normal way.
The cost of equity is always determined by the equity beta. The equity beta measures all the risk of the equity (business risk and gearing risk).
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