Cost of equity: Difference between revisions
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imported>Doug Williamson m (Spacing) |
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(Ke). | (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. | 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%. | For example 10%. | ||
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* [[Equity]] | * [[Equity]] | ||
* [[Weighted average cost of capital]] | * [[Weighted average cost of capital]] | ||
Revision as of 11:10, 5 August 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.
