- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
See BPP Revision kits ; MCQ Bank number 61.4
The 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 ?
You really need to watch the lectures on CAPM!
The cost of equity is always determined by the equity beta. Always!
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.