Unit 7: Critical Assessment Forum

Directions 

Initial Critical Assessment

Respond to one of the following topic to present to your peers in a professional analysis using a minimum of 350 words.

Topic

• Using the Chapter 12 Appendix (p. 445 – 449), critique the practical considerations and potential limitations presented when forecasting a company’s beta.
• Evaluate two methods that can be used to estimate a firm’s debt cost of capital. What are potential advantages and disadvantages using these methods?
• Describe the market risk premium and the risk free rate and analyze how these are determined and applied in financial calculations (e.g. CAPM).

 Your critical response should have a minimum of two sources published in the last 12 months which should be used to support the content within the postings, proper in-text citations.  Your responses should be professionally written and correctly formatted references should be prepared consistent with the APA. The list of references should be physically positioned at the end of the postings.