Cost of Equity in Business Formulas

The cost of equity is the return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake by investing their capital. And is denoted by Re.

Business formulas that make use of Cost of Equity

fxWeighted Average Cost of CapitalGo

FAQ

What is the Cost of Equity?

The cost of equity is the return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake by investing their capital.

Can the Cost of Equity be negative?

{YesorNo}, the Cost of Equity, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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