Skip to content

Anastasia Byrd

Solved:  What is the cost of equity based on the bond yield plus risk premium method

Solved: What is the cost of equity based on the bond yield plus risk premium method

What is the cost of equity based on the bond-yield-plus-risk-premium method? During the last few years, this method has become increasingly popular in determining the cost of equity. This method takes into account the bond yield and the risk premium associated with the investment, resulting in a more accurate cost of equity calculation. So, what does this mean for investors? Simply put, it means more accurate and reliable valuations of investments, leading to better investment decisions and potentially higher returns. Cheers to that!