Cost of equity: Difference between revisions
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imported>Doug Williamson m (Spacing) |
imported>Doug Williamson m (Category added 9/10/13) |
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The cost of equity is often quantified in practice by using either the Capital asset pricing model, or the Dividend growth model. | The cost of equity is often quantified in practice by using either the Capital asset pricing model, or the Dividend growth model. | ||
== See also == | == See also == | ||
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* [[Equity]] | * [[Equity]] | ||
* [[Weighted average cost of capital]] | * [[Weighted average cost of capital]] | ||
[[Category:Equity]] | |||
[[Category:Capital_Structure]] |
Revision as of 11:05, 9 October 2013
(Ke).
The rate of return on a company’s net investments financed by equity which is required to service the providers of the company’s equity capital.
For example 10%.
The cost of equity is often quantified in practice by using either the Capital asset pricing model, or the Dividend growth model.