Yet another Director asks you about the logic of estimating the cost of equity (Ke) using CAPM.
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Yet another Director asks you about the logic of estimating the cost of equity (Ke) using CAPM. You know the Director's background includes having been a high yield bond analyst. Explain the similarities in the CAPM approach to estimating the cost of equity and estimating the yield to maturity of a bond with credit risk?
Related Book For
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
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