While calculating Discount rate (WACC), we need Equity Beta (for Ke). Whether we will use Equity Beta given in the question or will use Proxy Beta, adjusting for leverage effect, for calculation of Cost of Equity? If the answer is (use proxy beta) then what about equity beta given in the question.
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It’s a food manufacturing firm getting into the consumer electronic industry. Existing equity beta of the food manufacturing firm is not relevant.
Thank You ! I understood.