Cost of capitalForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Cost of capitalThis topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts May 15, 2015 at 7:00 am #246050 nadirMemberTopics: 71Replies: 43☆☆See BPP Revision kits ; MCQ Bank number 61.4The question gave equity beta, which is same as share beta/ geared beta ; therefore it should be ungeared into asset beta, to be able to find the cost of equity, but why in the answer , it has used the equity beta itself ? May 15, 2015 at 9:06 am #246077 John MoffatKeymasterTopics: 57Replies: 54500☆☆☆☆☆You really need to watch the lectures on CAPM!The cost of equity is always determined by the equity beta. Always! May 15, 2015 at 1:35 pm #246135 nadirMemberTopics: 71Replies: 43☆☆Thank you sir 🙂 May 15, 2015 at 3:02 pm #246150 John MoffatKeymasterTopics: 57Replies: 54500☆☆☆☆☆You are welcome 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In