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Star Appliance Company (B): January 198...

Harrington, Diana,...

Case

Star Appliance Company (B): January 1985

Harrington, Diana; Opitz, Casey S.

F-0684 | Published March 28, 1991 | 17 pages Case

Collection: Darden School of Business

Product Details

Students must estimate the cost of capital for this recently leveraged company (see F-0421) and use it to decide between two investment alternatives. Case data allows the use of a wide variety of debt and equity marginal-cost methods. The appendix to the case provides several ways to estimate the market returns for the capital asset pricing model, including analysts' forecasts.

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