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Cost of Equity using CAPM The risk-free rate is presented in the case (10 year government bond yield) The case describes beta and you have
Cost of Equity using CAPM
- The risk-free rate is presented in the case (10 year government bond yield)
- The case describes beta and you have choices so would you like to use the historical "raw" beta or a forward looking beta
- The case describes the market risk premium and you have choices. You can take a geometric average from 1928 - 2018, as an example. (about 1 page)
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