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Cost of capital and beta

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What procedures are used to determine the risk-adjusted cost of capital for a particular division? What approaches are used to measure a division's beta?

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Solution Summary

The solution gives two responses for each question: how to determine the risk-adjusted cost of capital, and approaches to measure beta.

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These are questions from the textbook by Brigham, Eugene F. and Houston, Joel F., "Fundamentals of Financial Management", The Dryden Press, 2007. So I will give you the standard answers.

- What procedures are used to determine the risk-adjusted cost of capital for a particular ...

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