Cost of capital problem

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Friends pls solve ma query.. While calculating WACC if retained earnings are given in book value but not in market value....i have seen 2 things in same type of 2 questions. 1. They had bifercated market value of ESC in the ratio of book value of Esc nd retained earnings. 2. . In t other numerical they hadnt take retained earning at all. ..pls tel me t corect procedure regaring this
Replies (2)

Both are correct...........

Bt in case, cost of equity is nt same as dat of cost of retained earnings....den the first method should be given preference.

yes the first method is correct


CCI Pro

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