Abstract
The objective of this case is to estimate the appropriate discount rate which would serve as a cut-off rate in evaluating and accepting capital expenditure projects. The calculation of cost of equity, cost of debt, and weighted average cost of capital concepts are highlighted. In making calculations the case also highlights the use of market data.
Additional Information
| Product Type | Case |
|---|---|
| Reference No. | F&A0397 |
| Title | Associated Bearing Company Limited |
| Pages | 7 |
| Published on | Jan 1, 1988 |
| Year of Event | 1985 |
| Authors | Pandey, I M; Bhat, Ramesh; |
| Area | Finance and Accounting (F&A) |
| Discipline | Accounting, Finance |
| Sector | Manufacturing |
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