Question
In the APV approach, why is the unlevered cost of equity used instead of the WACC? a. To account for retained earnings risk. b. To
In the APV approach, why is the unlevered cost of equity used instead of the WACC?
| a. | To account for retained earnings risk. | |
| b. | To avoid measuring the impact of debt. | |
| c. | To value the company as if it were all equity financed. | |
| d. | To incorporate the risk of newly issued shares. |
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Real Estate Finance Theory And Practice
Authors: Terrence M. Clauretie, G. Stacy Sirmans
4th Edition
032414377X, 978-0324143775
