why don't we consider retaining earnings while calculating market value weights
.. please tell me anybody thank you
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FM (cost of capital)
Replies (4)
Good question.I also want to know.
sorry, we consider it.....
I need to know the reason beyond it
In market value weights we will consider market price not book value . if consider book value then we have to consider retained earnings separately for calculation of vale of firm on net assets basis
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