I was reviewing the calculation for adjusting pension beta and noticed they don't seem to take the firm's debt into account when doing the calculation. They do risk free + beta(risk premium) = WACC
Why don't you include the firm's debt when calculating WACC?作者: thommo77 时间: 2011-7-11 19:20
It assumes that the beta of debt is 0.作者: skycfa 时间: 2011-7-11 19:20
and yes forget that formula we learned last year where you take the %'s and after tax cost of debt. that doesnt exist on this Level.
