justin88

rish regarding the formulas

you use the formula to find the operating assets beta which is op assets beta = TWO the one i described above and then you apply this to the CAPM formula to find the WACC....i understand there is some confusion regarding why using this but personally i wont go deeper into this,i think just know these two and the idea of total asset beta which is increased when equities increase in pension assets and decreases when equities decrease in pension assets and it shall be enough....

and asset bet is the weighted avg of the two but debt is always a beta of zero so its the equity beta you are measuring