› boreja

boreja

Forum Replies Created

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • in reply to: Help me understand the WACC/Beta calculations… #73377
    Avatar of borejaboreja
    Participant
      23 Apr 2017 at 6:06 pm
      Up
      5
      ::

      It asks to explain the impact on equity beta and wacc of changing the plan asset allocation to 100% equity.

      Equity beta effect is ok, but the wacc?? It says it increases due to increasing operating asset beta.

      in reply to: Help me understand the WACC/Beta calculations… #73373
      Avatar of borejaboreja
      Participant
        23 Apr 2017 at 4:29 pm
        Up
        4
        ::

        Hello,
        Thank you very much for the explanation.
        I have a question regarding the example of what happens if pensions assets risk is increased.

        What happens to WACC? I found a question where it says, that the beta for pension assets increase, then the beta for operating asseta increase, and consequently the WACC.

        I don’t get it, bc total assets beta increase but not operating assets beta.. I would have said WACC staysmthe same because it is calculated with operating assets beta.

        Thx for your help!

      • Author
        Posts
      Viewing 2 posts - 1 through 2 (of 2 total)