Finance summary:
Week 1:
,Cost of equity Expected return = Rf + beta * (Rm – Rf)
Cost of capital = E/V * re + D/V * rd
Asset beta = E/V * beta e + D/V * beta d
, Week 2:
Week 1:
,Cost of equity Expected return = Rf + beta * (Rm – Rf)
Cost of capital = E/V * re + D/V * rd
Asset beta = E/V * beta e + D/V * beta d
, Week 2: