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Jennyfinans91

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  • in reply to: Help me understand the WACC/Beta calculations… #83157
    Avatar of Jennyfinans91Jennyfinans91
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      22 Jul 2018 at 6:27 pm
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      Hi I have 2 questions regarding wacc and beta, could someone help me with these:

      1. If cash and marketable securities do not have the same risk as debt, show how these assets can be taken into account when calculating WACC. Only a brief answer is necessary.

      2. Give a brief explanation for why debt may have a beta above 0, in other words, why the debt fluctuates with the change in the market portfolio. The answer can be brief.

      in reply to: Which topic did you find the hardest in Level 1? #83158
      Avatar of Jennyfinans91Jennyfinans91
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        22 Jul 2018 at 6:39 pm
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        1. If cash and marketable
        securities do not have the same risk as debt, show how these assets can be
        taken into account when calculating WACC. Only a brief answer is necessary.

        2. Give a brief explanation for why
        debt may have a beta above 0, in other words, why the debt fluctuates with the
        change in the market portfolio. The answer can be brief. 


        anyone?


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