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Estimating the cost of equity
Estimating the cost of equity

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4.2 Global ERP

Complete the global ERP activity below.

Activity 6 Global ERP

Timing: Allow around 15 minutes for this activity

Now read the article ‘The new premium puzzle [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] ’ and review your notes so far.

Point to note…

You can see that there is rarely an exact ‘right’ answer in this area of corporate finance.

Although arriving at an exact right answer may be impossible (for experts and novices alike), using the models and theories in the right way helps us to arrive at an answer that we have confidence in and can use for business decision making.