{"title":"Procter & Gamble: Cost of Capital (Abridged)","authors":"Kenneth M. Eades","doi":"10.2139/ssrn.909402","DOIUrl":null,"url":null,"abstract":"This case asks the student to compute Procter & Gamble's weighted average cost of capital to determine whether another company should enter the household-products market; the student must also compute Clorox's cost of capital as a check on the P&G estimate. The case emphasizes the conceptual as well as the mechanical aspects of computing cost of capital for a company with homogeneous business risk and stable capital structure. (The unabridged version of the case is UVA-F-0931.)","PeriodicalId":409545,"journal":{"name":"EduRN: Economics Education (ERN) (Topic)","volume":"66 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2008-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"EduRN: Economics Education (ERN) (Topic)","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.909402","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
This case asks the student to compute Procter & Gamble's weighted average cost of capital to determine whether another company should enter the household-products market; the student must also compute Clorox's cost of capital as a check on the P&G estimate. The case emphasizes the conceptual as well as the mechanical aspects of computing cost of capital for a company with homogeneous business risk and stable capital structure. (The unabridged version of the case is UVA-F-0931.)