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John Moffat.
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sajidhameed
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Dear forum,
i want to know Geared cost of equity and ungeared what does mean?
Thanks
John Moffat
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More gearing increases the risk to shareholders and therefore increases the cost of equity.
The unguarded cost of equity is the cost of equity if there was no gearing in the company.
The geared cost of equity is the actual cost of equity where there is gearing in the company.I do explain all of this in my free lectures.
sajidhameed
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