Re: Cost of equity
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WACC = only thing i remember from finance class
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Remember that WACC uses Ke as one of its inputs, so it can't possibly be an answer to 'how to calculate Ke w/o beta?'
PS
Last week I reviewed a securities analysis assignment for a friend of mine attending Georgetown. To value Colgate, they used a beta of 0.16 (????), giving them a Ke of around 5.6%, which (when combined with their outrageous EPS growth assumptions) gave an intrinsic value for CL of around $400 per share. Awesome.
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