Question from Jacqueline:
I'm supposed to calculate the divisional cost of capital in a case study. But I don't know how to do it. I have only the general numbers for the entire firm and can calculate the component cost (debt, etc.) and therefore the WACC, but regarding the single divisions I have only these numbers: net sales, operating profit, identifiable assets, depreciation, capital
I'm supposed to calculate the divisional cost of capital in a case study. But I don't know how to do it. I have only the general numbers for the entire firm and can calculate the component cost (debt, etc.) and therefore the WACC, but regarding the single divisions I have only these numbers: net sales, operating profit, identifiable assets, depreciation, capital