FinanceProfessor

Introduction to Cost of Equity and CAPM


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An introduction to the cost of equity and CAPM  

I should stress, that equity is not free.  Investors want a return.  That return is a cost to the firm.  (even though it does not appear on the income statement).  

CAPM is a common way to estimate the cost.  

REMEMBER, THIS IS AN INTRODUCTION.  It is meant to go with your textbook and class notes. 

 

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FinanceProfessorBy jim mahar