Procter and Gamble: Cost of Capital

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017


To assess whether a company should enter the household-products market, Procter and Gamble's weighted-average cost of capital is computed. Clorox's cost of capital is also computed as a check on the P&G estimate. The case emphasizes the conceptual as well as mechanical aspects of computing cost of capital for a company with homogeneous business risk and stable capital structure.



Eades, K. (2017), "Procter and Gamble: Cost of Capital", Darden Business Publishing Cases.

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