mar350

1morelevel Wrote:
-------------------------------------------------------
> Irishgyy Wrote:
> --------------------------------------------------
> -----
> > Remember these principles, it works for me, you
> > can figure out the rest
> >
> > 1, the equity beta NEVER changes, the one
> changes
> > is asset beta.
> > 2. equity in balance sheet changes same
> direction
> > as equity in pension
> > 3. WACC uses operating assets beta
>
>
> Be careful. The equity beta changes if they
> reallocate the pension. Ie they change from 50%
> equity to 60% equity.



No, I am pretty sure they don't, there is a table in notes specifically illustrating that.