Cost of equity
You'll learn what cost of equity is and why it matters to company valuation. This video introduces the three main models used to estimate cost of equity—the dividend valuation model, dividend growth model, and capital asset pricing model (CAPM)—so you can determine the returns shareholders expect from their
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Cost of equity introduction
- 0:07 What cost of equity represents
- 0:27 Three models for estimating cost of equity
About this lesson
investment. Understanding cost of equity is essential for financial analysis across FM, AFM, and SBR papers, and forms the foundation for calculating WACC and making investment decisions. By the end, you'll be able to distinguish between these approaches and apply them to real exam scenarios.
Duration: 1m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the Financial Management course
All 112 video lessons, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in