Cost of equity

From ACT Wiki
Revision as of 11:10, 5 August 2013 by imported>Doug Williamson (Spacing)
Jump to navigationJump to search

(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