When trying to estimate the cost of equity for a company using the CAPM, it is possible to find the beta of a comparable, publicly traded company whose primary business is closely related to the company at hand.

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This is true. Using the beta of a comparable, publicly traded company can be a useful proxy for estimating the cost of equity for a company using the CAPM. However, it is important to ensure that the chosen comparable company is, indeed, closely related to the company in question in terms of its primary business and risk factors.

When Trying to Estimate the Cost of Equity for a Company