Page 30 - FINAL CFA I SLIDES JUNE 2019 DAY 10
P. 30
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.
