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Estimates of U.S. Beta Adjusted Size Premia Market Cap Range Size (Millions) Premium $1,379.267 to $1,946.588 1.67% $977
Posted: Sun Jun 05, 2022 10:41 am
by answerhappygod
- Estimates Of U S Beta Adjusted Size Premia Market Cap Range Size Millions Premium 1 379 267 To 1 946 588 1 67 977 1 (304.39 KiB) Viewed 47 times
Estimates of U.S. Beta Adjusted Size Premia Market Cap Range Size (Millions) Premium $1,379.267 to $1,946.588 1.67% $977.912 to $1,378.476 1.62% $627.017 to $976.624 2.28% $314.912 to 9 $626.955 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. EXHIBIT Market Cap Decile 6 7 8