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- Topic: Which cost of equity method is practically better?
| Author | Topic: Which cost of equity method is practically better? |
|---|---|
| zamancfa @2016-09-04 04:00:32 |
If in an ideal scenario, a person, who is calculating the cost of equity, has all the information about dividends, growth, risk premiums, systematic risk. He can go with any of the 3 different ways (3 included in the level 1 curriculum) of calculating the cost of equity (Dividend discount method, CAPM, Bond Yield and Risk Premium). What should be his best choice? I understand that all the methods have their own assumptions. I just want to know which of these options the best in real life scenarios is. What methods do analysts prefer? Which one presents the most realistic result? |
CFA Discussion Topic: Which cost of equity method is practically better?
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
