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Dear sir…
In WACC how to calculate the cost of equity…. explain with calculation please….Ordinary shares 200
Reserves 650Please reply soon
You use the formula on the formula sheet.
You must watch the free lectures on cost of equity – I am sorry but I cannot possible type out the whole of the lectures here.
(Our lectures are a complete course for Paper F9 and cover everything needed to be able to pass the exam well.)
I am asking for cost of equity calculation on book value… tell me the formula only
Do not be so rude!!
We never calculate cost of equity based on book value, and you certainly cannot calculate a cost of equity from the little bit of information you typed.
The only formula you need are the two on the formula sheet – the dividend valuation formula and the CAPM formula.
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