Demonstrates the prices of capital assets of the model can be used to assess the effects of financial leverage on the cost of equity. Levering unlevering out of beta and illustrated. Also presents a methodology for the decomposition of the cost of equity in its three components - the risk-free rate, the premium for the business and financial risk premiums "Hide
. by David W. Mullins Jr. 12 pages. Publication Date: March 1, 1980. Prod. #: 280100-PDF-ENG