This case asks the student to calculate the weighted average cost of Procter & Gamble, the capital, to determine the other company to enter the market in consumer products, the student must also calculate the cost of capital in Clorox to test the P & G estimate. The case highlights the conceptual and mechanical aspects of computing the cost of capital for companies with similar business risk and stable capital structure. "Hide
by Kenneth Eades Source: Darden School of Business 10 pages. Publication Date: October 21, 1997. Prod. #: UV0392-PDF-ENG
Related Case Solutions & Analyses:
GM: The Opel Decision
Schlumberger
REFLECTION ESSAY
Millennium Corporation
Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding
NCFCU: Serving the “Sinks” in the City by the Bay
Bandyworks (A): Financing a New Business (Guided By the Past)
Transition to a Market Economy: The Components of Reform
Shock Therapy in Eastern Europe: The Polish and Czechoslovak Economic Reforms
Microsoft in the People’s Republic of China–1993
