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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Cost of equity
Dear sir
Kindly assist. I would like to know when to use equity beta and when to use asset beta when calculating cost of equity
Thank you
The cost of equity is always determined by the equity beta. Very often in exam questions you will need to calculate the equity beta from the asset beta, but it is always the equity beta that determines the cost of equity.
I do suggest that you watch my free lectures on CAPM.
Thank you sir
You are welcome.