= (d) What is the of the debt, if the of the capital employed is
Question:
=
(d) What is the β of the debt, if the β of the capital employed is equal to the average
β of the capital employed and the debt weighted by the relative share of debt and equity in financing the capital employed?
ββ β = E E E D D D D E V
V V V
+ V V +
+
⎛
⎝
⎜
⎜
⎜⎜
⎞
⎠
⎟
⎟
⎟⎟
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Related Book For
Corporate Finance Theory And Practice
ISBN: 9781118849330
4th Edition
Authors: Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi
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