In an earlier screencast we discussed the nature of the equity risk premium.  In today’s screencast we look at how CFOs estimate the equity risk premium and whether that actually matters for stock market investors.  In short, we are in murky territory here.

Posts mentioned in the above screencast:

Now that skepticism abounds on the existence of the equity risk premium is due for a return?  (AR Screencast)

The equity risk premium in 2010:  a survey of CFOs.  (SSRN)

Does the cost of capital matter to the stock market?   (Minyanville)