- This topic has 0 replies, 1 voice, and was last updated 14 years ago by
.
Viewing 1 post (of 1 total)
- Posts
Dear all,
I am confused about the cost of equity(ungeared), the answer uses geared beta to get ungeared beta, then to get Ke. Why not use M&M method in the fomula sheet, which is
Ke= Ke(ungeared) + (1-T)(Ke(ungeared)-Kd)Vd/Ve ?
Can someone tell me the difference between the two method? thx!
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.