Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case
-
Reference no. UVA-F-0931
Published by: Darden Business Publishing
Originally published in: 1990
Version: 03.1991

Abstract

To assess whether a company should enter the household-products market, Procter and Gamble''s weighted-average cost of capital is computed. Clorox''s cost of capital is also computed as a check on the P&G estimate. The case emphasizes the conceptual as well as mechanical aspects of computing cost of capital for a company with homogeneous business risk and stable capital structure.

About

Abstract

To assess whether a company should enter the household-products market, Procter and Gamble''s weighted-average cost of capital is computed. Clorox''s cost of capital is also computed as a check on the P&G estimate. The case emphasizes the conceptual as well as mechanical aspects of computing cost of capital for a company with homogeneous business risk and stable capital structure.

Related