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Cost-of-Capital Exercises

Eades, Kenneth M.

Exercise

Cost-of-Capital Exercises

Eades, Kenneth M.

F-0909 | Published March 29, 1990 | 5 pages Exercise

Collection: Darden School of Business

Product Details

These cost-of-capital exercises stress the weighted-average cost of capital, beginning with a simple capital structure and extending to a company with a complete balance sheet, including four separate debt issues. The problems demand that several different estimates of cost of equity be computed using the CAPM, earnings capitalization, and the dividend-growth model.

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