Ungeared beta for discounting

This topic has 1 reply, 2 voices, and was last updated 16 years ago by zigot14.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
June 4, 2010 at 9:28 am #44403
zuzana
Member
- Topics: 1
- Replies: 3
Hi there. Do you know why in Q5 Strayer (BPP kit), they are using the ungeared Ke for calculation of base case NPV?

Thanks! Zuzana
June 4, 2010 at 10:36 am #62038
zigot14
Member
- Topics: 6
- Replies: 20
Assumming that it’s an APV question, discounting using ungeared Ke for base case NPV is correct.

Because the financing effect is calculated separately.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.