Star Appliance Company (B): January 1985

17 Pages Posted: 21 Oct 2008

See all articles by Diana Harrington

Diana Harrington

affiliation not provided to SSRN

Casey Opitz

University of Virginia - Darden School of Business

Abstract

In the B case, students must estimate the cost of capital for this recently leveraged company and use it to decide between two investment alternatives. Case data allow the use of a wide variety of debt and equity marginal-cost methods. The case appendix provides several ways to estimate the market returns for the capital-asset-pricing model, including analysts' forecasts. See also the A case (UVA-F-0421).

Keywords: capital asset pricing model, capital investment, cost of capital

JEL Classification:

Suggested Citation

Harrington, Diana and Opitz, Casey, Star Appliance Company (B): January 1985. UVA-F-0684, Available at SSRN: https://ssrn.com/abstract=909047

Diana Harrington (Contact Author)

affiliation not provided to SSRN

No Address Available

Casey Opitz

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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