The two managers discuss hurdle rates, dividend yields, stock issues, and borrowing history in their attempt to compute the cost of capital for BC Telecom Inc.
Learning Objective:
To review the concept of cost of capital.
To review Canadian market data on risk and maturity premiums.
To develop a procedure for estimating the various parts of the cost of capital.
Publication Date: 10/16/1995
This is just an excerpt. This case is about Finance
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