Comments

  1. avatar says

    Thank you John,The topic was well explained,No need of memorizing as the topic was well understood.You are a teacher not a lecturer and i appreciate you for that.Also u did try as much as possible to simplify f9 which is very helpful. Cheers and keep up the good work,God Bless you.

  2. Avatar of johnmoffat says

    Yes – if you are asked for the cost of equity then this is correct.

    The cost of equity is always determined from the geared (equity) beta.

    (although obviously if the company is all equity financed, or if the project is to be financed all from equity, then the geared beta will be the same as the ungeared (asset) beta. (

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