This note provides a detailed explanation of how to use the residual method of estimating the capital, when the debt / equity mix is changing. An example is provided that runs through the beta Levering. The note can be used to support cases on borrowed funds.
This Darden study. "Hide
by Robert M. Conroy, Robert S. Harris Source: Darden School of Business 9 pages. Publication Date: September 30, 1999. Prod. #: UV0111-PDF-ENG