... relative to its cost of debt? Is the 4% risk premium appropriate for the MDC division or should the division be measured against Mead's overall WACC? cost of capital return on investment capital asset pricing model equity risk premium Exhibit 1 WACC 10-Year History...

... in a spreadsheet, or transmitted in any form or by any means-electronic, mechanical, photocopying, recording, or otherwise-without the permission of the Darden School Foundation. Rev. 3/98. capital asset pricing model cost of capital dividend-growth model divisional performance multinationals...