Capital budgeting – Session/Class 4

  • Capital budgeting – Session/Class 4

    Posted by Precious on April 13, 2021 at 4:42 pm

    Dear Sir,

    Thank you for your well-taught sessions. I enjoy them.

    Please I noticed that in session 4 while solving the part a of the question, while calculating the cost of equity (Ke), you obtained 15.084%.
    My question is why did you use 3+ (2.014*6) rather than using the full formula to give 3 + 2.014 (6-3)= 9.042%

    Your response will be highly appreciated.

    Best regards
    Precious Ezealigo

    Precious replied 1 year, 7 months ago 1 Member · 0 Replies
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