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Cost of Equity
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5:19
YouTube
Business Basics Essentials
How to Calculate Cost of Equity by using the CAPM model (Capital Asset Pricing Model)
WACC has two sides to its formula, Cost of Equity and Cost of Debt. The best way to calculate the Cost of Equity is the CAPM model or Capital Asset Pricing Model. CAPM model includes the risk-free rate, beta, and market risk premium. In this video, we will explain how to calculate the Cost of Equity which is the expected return for investors ...
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