2 70 10 2 247 To 314 433 6 27 Source Cfa Curriculum Readings Level Ii Readings 35 P 89 A Based On Build Up Met 1 (410.88 KiB) Viewed 27 times
2 70 10 2 247 To 314 433 6 27 Source Cfa Curriculum Readings Level Ii Readings 35 P 89 A Based On Build Up Met 2 (410.88 KiB) Viewed 27 times
2.70% 10 $2.247 to $314.433 6.27% Source: CFA Curriculum Readings Level II (Readings 35, p. 89) a) Based on build-up method Based on build-up method (1), how much is an estimate of the cost of equity for the private company? (2 points) b) Assume you decided to use a risk premium of 3.5% in the bond yield plus risk premium approach, how much is estimate of the cost of equity for the company? (2 points) In your written response, please start with question numbers such as a) or b) before showing your work and answer to the question.
2.70% 10 $2.247 to $314.433 6.27% Source: CFA Curriculum Readings Level II (Readings 35, p. 89) a) Based on build-up method Based on build-up method (1), how much is an estimate of the cost of equity for the private company? (2 points) b) Assume you decided to use a risk premium of 3.5% in the bond yield plus risk premium approach, how much is estimate of the cost of equity for the company? (2 points) In your written response, please start with question numbers such as a) or b) before showing your work and answer to the question.
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