A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 5 years ago
Hi All, I am working on Table 9.4 of estimated debt ratios with existing ratios(Applied corporate Finance, Damodaran), does anyone know how to estimate the cost of equity for future periods? Thank You!
anonymous
 5 years ago
Hi All, I am working on Table 9.4 of estimated debt ratios with existing ratios(Applied corporate Finance, Damodaran), does anyone know how to estimate the cost of equity for future periods? Thank You!

This Question is Closed

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0Here is what I tried to do. I computed the expected values of equity and debt each year. To get the former, I had to allow for the increase in value of equity from price appreciation but I did net out dividends and buybacks... For debt, I looked at the starting debt and any repayments.. I used this debt to equity ratio to compute a new levered beta and the beta to get to a cost of equity.
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.