Cost of Capital Leveraged Beta

At the end of the video, I plugged the wrong number in for the market risk premium. I used the leveraged beta and didn't change the unleveraged beta. Should be
Re = 3% + 1.5821(15%) - the answer given is correct. Thanks to a viewer for pointing this out.
More videos at facpub.stjohns.edu/~moyr/vide...

[@dougzembiec9995]

Awesome video once again 👏👏👏.... The CAPM formula is : Rf + Beta(ungeared) X (Rm - Rf)
Answer 3% + 1.5(15-3) = 21%

[@MJBaro]

hi Ronald, thanks for the videos i am learning so much from you.
I have a case where the beta is not given but comparables firms' beta are, should i use the unleverged beta of each and get their average?

[@ny4039]

thank you

[@tysondenhamer4190]

FYI - Theres an error at the end of this video, Beta is plugged as the Rm in the cost of equity calculation

[@RonaldMoy]

Your right. Thanks for letting me know.

[@hegelli1188]

Hi Ronald! My question is the same as Doug's: Shouldn't it be the beta*market risk premium instead of beta * market return? We are calculating the required return here. Anyway, I only learned one formula, so am very easy to get confused. Thank you for your clarification!

[@RonaldMoy]

That's correct. My mistake.

[@dougzembiec9995]

If they said the MARKET PREMIUM was 15% then you can ignore subtracting the risk free rate

[@RonaldMoy]

That's correct.