Calculating the cost of equity using swap as a proxy

Hello everyone

The other day I was talking with the analyst of my group and he said that he had read elsewhere that you could calculate the cost of equity for the wacc using the 10Y Swap price the company was paying on it. I don't think it makes sense - neither does he - but wanted to know if some of you could shed some light on it.

cheers in advance

3 Comments
 

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