Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Length: 16 pages
Data source: Published sources
Share a link:
https://casecent.re/p/528
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Abstract
This note outlines the link between shareholder-return requirements and a firm''s use of debt. It explores the theoretical arguments concerning how the cost of equity changes with the use of debt and discusses the limitations of each view. It also provides conceptual and practical guidance on the use of ''levered'' and ''unlevered'' betas.
About
Abstract
This note outlines the link between shareholder-return requirements and a firm''s use of debt. It explores the theoretical arguments concerning how the cost of equity changes with the use of debt and discusses the limitations of each view. It also provides conceptual and practical guidance on the use of ''levered'' and ''unlevered'' betas.