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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

  1. The risk-free rate is presented in the case (10 year government bond yield)
  2. The case describes beta and you have choices so would you like to use the historical "raw" beta or a forward looking beta
  3. 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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