R44, page 566, Q6, it use “required rate of ROE” as required rate of return of equity. I do feel it is confusing with ROE. I worry in the exam day if that happen…
If you understand both the overall concept and the point of the question, you shouldnt get confused at all.
is it usually Market value of the firm refer to Market value of equity which = stock price * total share ? Thanks. cgeorgan Wrote: ------------------------------------------------------- > If you understand both the overall concept and the > point of the question, you shouldnt get confused > at all.
Market value of the firm is equity + debt.
so what we get by stock price* total share is just market value of the equity? Thanks. grumble Wrote: ------------------------------------------------------- > Market value of the firm is equity + debt.