Page 108 - AFM Integrated Workbook STUDENT S18-J19
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Chapter 6





                           Cost of equity k
                                                          e




               2.1 Introduction

               The cost of equity (k e) is the same as the required return of the shareholders. On the
               formula sheet there are three different ways of calculating k e:



                                                       Cost of

                                                      equity k e




                                                                                 M&M’s
                                CAPM
                                                          DVM                Proposition 2










































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