Complete Case details are given below :
Case Name : Procter and Gamble: Cost of Capital
Authors : Kenneth Eades
Source : Darden School of Business
Case ID : UV0604
Discipline : Finance
Case Length : 16 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
To assess whether a company should enter the household-products market, Procter and Gamble’s weighted-average cost of capital is computed. Clorox’s cost of capital is also computed as a check on the P&G estimate. The case emphasizes the conceptual as well as mechanical aspects of computing cost of capital for a company with homogeneous business risk and stable capital structure.
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