Cost of equity: Difference between revisions
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For example 10%. | 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. | The cost of equity is often quantified in practice by using either: | ||
:(1) the Capital asset pricing model, or | |||
:(2) the Dividend growth model. | |||
Revision as of 19:03, 21 January 2018
(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.
