Cost of equity

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Revision as of 19:35, 27 November 2014 by imported>Doug Williamson (Improve clarity & consistent branding.)
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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: (1) the Capital asset pricing model, or (2) the Dividend growth model.


See also