There is no way to directly observe the cost of equity as a component of the weighted average cost of capital. Let’s discuss two methods that may be used to estimate the cost of equity.
 
Forum Instructions: Your initial response should be at least 250-words with at least one scholarly journal reference. Support your main response with at least 1 scholarly journal reference in addition to the course materials. Please note Wikipedia, Investopedia and similar websites are not credible academic references. Use the Online Library to research credible references. Include in-text citations and references in APA format.
 
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