Errata page for The Little Book
of Valuation
|
Page number |
In book |
Correction |
|
45 |
Cost of equity = Risk free rate + Beta * ERP = 3.72% + 1.29 (4%) = 9.16% |
Cost of equity = Risk free rate + Beta * ERP = 3.72% + 1.29 (4%) = 8.88% |
|
47 |
After-tax Cost of Debt = (3.72%+ 0.75%) (1-.40) = 2.68% |
|
|
47 |
9.16% (57/(57+5.3)) + 2.91% (5.3/(57+5.3)) = 8.63% |
Cost of
capital = 8.88% (57/(57+5.3)) + 2.68% (5.3/(57+5.3)) = 8.61% |
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