Procter & Gamble: Cost of Capital
Eades, Kenneth M.
Procter & Gamble: Cost of Capital
F-0931 | Published March 29, 1990 | 16 pages Case
Collection: Darden School of Business
Product Details
To assess whether a company should enter the household-products market, Procter and Gamble's weighted-average cost of capital is computed. Clorox's cost of capital is also computed as a check on the P&G estimate. The case emphasizes the conceptual as well as mechanical aspects of computing cost of capital for a company with homogeneous business risk and stable capital structure.
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