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When to use MMs proposition 2 formula

Former userFormer user5y ago

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John MoffatJohn MoffatTutor5y ago#1
It is when you need to find the geared or unguarded cost of equity but are not given the betas in the question. If you are given betas (as is usually in the case) then use them because although you could use the MM formula it is so much messier :-)
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