Cost of equity

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Revision as of 11:05, 9 October 2013 by imported>Doug Williamson (Category added 9/10/13)
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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