Project-Specific Cost of Equity MADE EASY | ACCA FM Help | Question Zeddemore

Learn how to easily calculate a project-specific cost of equity for the ACCA FM / F9 exam. You'll understand how the beta asset formula and capital asset pricing model (CAPM) formulas work and I'll show you the exam technique you need to get a pass on ACCA FM. Project-specific cost of equity is a tricky topic but it can be easy if you learn the spreadsheet approach that I demonstrate in the video. I'll take you through question Zeddemore from the March/June 2021 FM exam. Good luck on your FM exam!
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Table of Contents
00:00 - Introduction
02:20 - CAPM formula
03:37 - Project Specific Cost of Equity Formula
04:31 - Market values of debt and equity
07:32 - Beta Asset Calculation
08:01 - Degear the Proxy
10:01 - Regear Asset Beta
11:46 - Project-specific cost of equity
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Steve Willis ACCA
How to Pass FM
Project specific cost of equity help

[@asadbekisayev1622]

thank you Steve, today i pass pm exam and i also have f9 exam in 10 march , your video really helpful :)

[@SteveWillisACCA]

Best of luck!

[@EnriqueLopez-vv4fb]

Hey Chief, I passed, 65% thanks a lot for your hard work. You are the rockstar.

[@SteveWillisACCA]

Amazing. Well done! Can I use your quote on my website? :) pls email me [e-mail]

[@sheikhjamal2822]

Hi Steve, your lecturer is just brilliant. Thank you.

[@SteveWillisACCA]

You are very welcome! Good luck Friday.

[@yasinabdikani6457]

Sir i am respectfully appreciating to you that in December exam your video helped me very well and you are the best lecturer for this course that i have ever seen❤️❤️🙏🏻 allah will reward you for one day

[@SteveWillisACCA]

Thanks and welcome

[@jaswinsrirammaddineni9880]

Hi Steve , ism Ram from India working for Czech company as CFO and iam going to appear for FM exam on 8/Sep/2023 Your explanation really simple and clear. Thank you

[@SteveWillisACCA]

Glad they are helpful!

[@zold2000]

you are an amazing teacher

[@SteveWillisACCA]

Thank you! Good luck on your exam.

[@h3ll_3]

Thank you so much, very useful

[@SteveWillisACCA]

You are welcome!

[@giorgilobjanidze8297]

Very goid lecture. Like other ones. Many thanks

[@SteveWillisACCA]

You are most welcome

[@user-et9fb5et3e]

Thank you steve

[@SteveWillisACCA]

My pleasure. Good luck 🤞

[@encymathews]

thanks steve for the breakdown of question, really helpful, sitting for the exam in few days , could you please comment on a(ii) as well , thanks in advance !! project specific equity is 19.5%, are we comparing to 17.8%

[@SteveWillisACCA]

Sure! That shows that the investors have a higher required return due to taking on the extra risk in the new sector.

[@encymathews]

@@SteveWillisACCA thank you so much for your prompt reply

[@SteveWillisACCA]

welcome :)

[@kgalalelomatlhare6215]

Hi Steve Do you have a direct link to subscribing to this in your website, the one similar to that of PM. I would like the Full Access for FM . Thank you

[@SteveWillisACCA]

I'm sorry, I don't have that yet.

[@apnaplays4161]

You appear to have uploaded this twice

[@SteveWillisACCA]

There was a typo in the title of the previous version :/ So I fixed the typo and re-uploaded it. Previous version is down now. Thanks for watching though!