Just had a follow up on:
"I am noticing that more and more companies are reducing their required return to pay very high multiples of cash flow for companies, because they think their cost of capital has dropped as markets have gone up and yields have compressed"
By definition, if interest rates drop + credit spreads tighten would company's cost of debt not also decline. In addition, if equity multiples are increasing would the cost of equity not also decline. Both of which, decreasing the cost of capital, without a relation to beta. I thought by definition this was the case and I am confused on how you can disagree with this, or maybe I am wrong in my thinking.
Look forward to hearing your take.