- CFA Exams
- 2025 Level II
- Topic 4. Corporate Issuers
- Learning Module 18. Cost of Capital: Advanced Topics
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Learning Outcome Statements PDF Download
1. Cost of Capital Factors compare methods used to estimate the cost of debt; | |
2. Estimating the Cost of Debt explain historical and forward-looking approaches to estimating an equity risk premium; | |
3. The Equity Risk Premium compare methods used to estimate the required return on equity; | |
4. Required Return on Equity estimate the cost of debt or required return on equity for a public company and a private company; | |
5. Estimating the Cost of Equity for Private Companies define valuation and intrinsic value and explain sources of perceived mispricing; explain the going concern assumption and contrast a going concern value to a liquidation value; describe definitions of value and justify which definition of value is most relevant to public company valuation; |

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