|
Case
| HBS Case Collection
|
1998
(Revised from original version)
Lex Service PLC-- Cost of Capital
by
W. Carl Kester and Kendall Backstrand
|
Abstract
Lex Service company has grown into a large multidivisional company with a substantial capital budget. In 1993, the board was reviewing its capital budgeting procedures. Specifically, it sought to determine the company's cost of capital and whether it should use different hurdle rates for different divisions.
Keywords: Budgets and Budgeting;
Business Divisions;
Capital;
Cost of Capital;
Investment Return;
Risk and Uncertainty;
Citation:
Kester, W. Carl, and Kendall Backstrand. "Lex Service PLC-- Cost of Capital." Harvard Business School Case 296-003, March 1998. (Revised from original April 1996 version.)