How how do we define equity what is midlands current

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Unformatted text preview: ? How How do we define equity? What is Midland’s current debt/equity ratio? 7 Question 3: Midland’s Target Debt / Equity Ratio Question What is the target debt/equity ratio? Does the difference with the current B/S ratio Does matter? Which should you use? Question 3: WACC calculations – cost of equity Question What is the beta? Unlevered beta = asset beta Unlevered βU = βS B 1 + ( 1 − TC ) S Now use target B/S to obtain levered beta Question 3: WACC calculations – cost of equity based on CAPM based What is the risk-free rate? What is th...
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This document was uploaded on 01/15/2014.

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