The Inputs for Cost of Capital worksheet provides inputs for the Cost of Capital Analyzer. To access the Cost of Capital Analyzer, click on the Get D&P Cost Capital button in the Desktop Toolbar.
The Report Year is calculated from the valuation date, which is one of the Standard Fields on the Business Profile sheet. It is a blue text cell so you can overwrite its value.
To use the long-term equity risk premium from the study, leave the cell labeled "What Long Term Equity Risk Premium To Use" blank. If you want to use a different equity risk premium, or you want to normalize the premium from the study, enter the value you want to apply in this cell.
All of the size inputs that can be calculated from other sheets are presented as blue text cells. The inputs that cannot be calculated are presented as white cells. Complete or edit any of these inputs that you want to apply.