Page 35 - FINAL CFA SLIDES DECEMBER 2018 DAY 11
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Session Unit 10:

                                                                                                      36. Cost of Capital



















                                                         tanties




                                                                            3 Models, 3 Estimates:
                                                                            •    The CAPM                              = 11.5%,

                                                                            •    Dividend discount model               = 12%
                                                                            •    Bond yield plus risk premium  = 13%.




                                                                                 CFAs must use their judgment to
                                                                                 decide which is most appropriate.
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