Considering building a second location, purchasing a company, or entering a new market? Calculating the cost of equity can ensure your investment pays off. Investors and small business owners use the ...
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How Do I Use the CAPM to Determine Cost of Equity?
Reviewed by Thomas J. CatalanoFact checked by Ryan EichlerReviewed by Thomas J. CatalanoFact checked by Ryan Eichler Corporate accountants and financial analysts often use the capital asset pricing ...
it’s necessary to unlever the beta. That number is then used to find the cost of equity. To calculate the unlevered beta—say, for a private company—an investor must gather a list of comparable company ...
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