Im just doing my final revision and checking i know when to use the formulas however two im not 100% on when should i use the asset beta formula? And also the g=br e formula’s?
g=br e is only used when they specifically ask for it in the question. Asset beta formula usually comes in the form of a question saying a company is looking into a new business area where similar companies have these betas and debt:equity ratios etc. where you have to ungear and re-gear