In CAPM is the ungeared Cost of equity > geared cost? (cuz debt is supposed to be cheaper than equity finance)

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An implicit cost of increasing proportion of debt is:
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VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
20-September-2014

Raising Finance Equity Capital Markets CAPM Financial Analysis

Question added by Abdul Wasay Hassan , Deputy Manager Internal Audit , Pak Suzuki Motor Company Ltd.
Date Posted: 2014/07/01

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2 Answers

Sudheer Basheer

by Sudheer Basheer , Senior Accountant , Geojit Financial Services Ltd

Of course.. debt is free risk one as of gets coupon interest on investment timely as compare with the Equity.

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by Mahmood Alani , ادارة مشاريع , وزارة حكومية

certification associate project management

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