In The Little Book of Valuation there is an example for how to calculate cost of equity. I couldn't get the same value that's in the book. Am I doing something wrong, or is this a typo? 3.72% (risk-free rate) + 1.29 (beta) * 4% (equity risk premium) = 9.16% I want to make sure I understand how the 9.16% was derived, as I keep getting 8.88%.

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In The Little Book of Valuation there is an example for how to calculate cost of equity. I couldn't get the same value that's in the book. Am I doing something wrong, or is this a typo? 3.72% (risk-free rate) + 1.29 (beta) * 4% (equity risk premium) = 9.16% I want to make sure I understand how the 9.16% was derived, as I keep getting 8.88%.

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Looks like your computation is right and I must have screwed up. Which chapter was this in?
Thank you for your fast response, it was in Chapter 3, right after Table 3.3
Thank you for your fast response, it was in Chapter 3, right after Table 3.3

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