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标题: Wrong Formula? [打印本页]

作者: SkipE99 时间: 2011-7-11 19:17 标题: Wrong Formula?

In the bottom of printed page 107 in the corporate finance book, they give the equation for finding the cost of equity as :

Re = Ro + (Ro-Rd)(1-T)(D/E)

when I think it should be:

Re = Ro + (Ro-Rd(1-T))(D/E)

Is this correct?

作者: giorgio10 时间: 2011-7-11 19:17

equation is fine as is. I am sure u can c how to derive it on the web. Ur just used to seein t after debt...

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