| HBS Case Collection
(Revised March 1998)
Lex Service PLC-- Cost of Capital
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;
Cost of Capital;
Risk and Uncertainty;