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Abridged version
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Reference no. UVA-F-1183
Published by: Darden Business Publishing
Originally published in: 1997
Version: 03.2004
Length: 10 pages
Data source: Published sources

Abstract

This case asks the student to compute Procter & Gamble''s weighted-average cost of capital to determine whether another company should enter the household-products market; the student must also compute Clorox''s cost of capital 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.
Location:
Industry:
Size:
USD20 billion
Other setting(s):
1990

About

Abstract

This case asks the student to compute Procter & Gamble''s weighted-average cost of capital to determine whether another company should enter the household-products market; the student must also compute Clorox''s cost of capital 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.

Settings

Location:
Industry:
Size:
USD20 billion
Other setting(s):
1990

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