Estimating the cost of equity

In this free course we examine the factors that determine the return sought by investors when buying shares. This expected return takes into account the perceived risks of investing in different shares. Section 1 of this course should be used in conjunction with the activities provided in Sections 2 to 5. The latter will help you develop and test your understanding of the concepts and issues covered. This OpenLearn course is an adapted extract from the Open University course B858 Introduction to corporate finance.