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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Keg? (Capital Structure)
Hello, hope you can help me.
I’ve been reading the technical articles and have got to the June/Jul 09 article on Optimum Capital Structure. The article says:
“Remember that Keg is a function of beta equity which includes both business and financial risk, so as financial risk increases, beta equity increases, Keg increases and WACC increases”
I’m pretty sure I haven’t come across the term Keg before. What does it mean?
These articles usually consolidate rather than causing panic LOL!
P.s. I’m guessing from context it just means the geared cost of equity. Is that right?
Don’t panic!
It does just mean the geared cost of equity 🙂
Phew, thanks!
You are welcome 🙂