Question(a)-Neptune(6/08)

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May 5, 2011 at 2:26 pm #48337
uniquelyf
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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!
May 7, 2011 at 11:00 am #81517
uniquelyf
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Can anyone help me?
May 7, 2011 at 11:01 am #81518
uniquelyf
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Can anyone help me?
May 7, 2011 at 11:01 am #81519
uniquelyf
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- Topics: 4
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Can anyone help me?
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