Cost of equity: Difference between revisions
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imported>Doug Williamson m (Category added 9/10/13) |
imported>P.F.cowdell@shu.ac.uk m (Categorise page) |
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* [[Weighted average cost of capital]] | * [[Weighted average cost of capital]] | ||
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Revision as of 13:07, 15 August 2014
(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.
