Client Assets Sourcebook and Cost of equity: Difference between pages
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(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. | |||
== See also == | |||
* [[Capital asset pricing model]] | |||
* [[Cost of debt]] | |||
* [[Dividend growth model]] | |||
* [[Equity]] | |||
* [[Weighted average cost of capital]] | |||
Revision as of 14:19, 23 October 2012
(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.
See also
- Capital asset pricing model
- Cost of debt
- Dividend growth model
- Equity
- Weighted average cost of capital
