The setting for the case is a rate hearing to determine the cost of capital for a gas utility. The case provides the opportunity for a full discussion of the dilemmas in estimating the cost of capital for both regulated and unregulated businesses.
The scenario has an additional twist in the company only became a wholly owned subsidiary of British Gas.
Learning Objective:
To explore the complete range of issues related to estimating the cost of common equity capital.
In addition, the other objective is to augment the qualitative assessments of threat and the use of analytical techniques, including correcting betas for fiscal influence.
In doing computations necessary to arrive at a figure of merit to provide exercise.
Publication Date: 11/14/1995
This is just an excerpt. This case is about Finance
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