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How Do You Calculate Debt and Equity Ratios in the Cost of Capital?
The ratio between debt and equity in the cost of capital calculation should be the same as the ratio between a company's total debt financing and its total equity financing. The cost of capital ...
Harvard Business School7y
The Capital Asset Pricing Model: Some Empirical Tests
Black, Fischer, Michael C. Jensen, and Myron Scholes. "The Capital Asset Pricing Model: Some Empirical Tests." In Studies in the Theory of Capital Markets, edited by ...
Harvard Business School3y
Financial Leverage, the Capital Asset Pricing Model and the Cost of Equity Capital
Mullins, David W., Jr. "Financial Leverage, the Capital Asset Pricing Model and the Cost of Equity Capital." Harvard Business School Background Note 280-100, March 1980. (Revised October 1980.) ...