Skip to content

Ask the Tutor ACCA AFM

FCFE- Direct calculation using cost of equity

AAnshika20d ago

Case- Calculating FCFE directly using cost of equity as a discount rate.

While calculating the cost of equity for above using CAPM method , one should put geared beta or ungeared beta like we take for APV calculation?

John MoffatJohn MoffatTutor20d ago#1

The cost of equity will be calculated using the geared beta.

Sign into reply to this topic.