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Cost of equity

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Cost of equity

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 15, 2021 at 8:27 pm #631683
    Avatarcayz
    Participant
    • Topics: 10
    • Replies: 15
    • ☆

    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

    August 16, 2021 at 8:44 am #631711
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    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.

    August 17, 2021 at 12:01 pm #631824
    Avatarcayz
    Participant
    • Topics: 10
    • Replies: 15
    • ☆

    Thank you sir

    August 17, 2021 at 2:25 pm #631841
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    You are welcome.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Cost of equity’ is closed to new replies.

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