Cost of Equity in Financial 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.

Financial formulas that make use of Cost of Equity

fxJustified Forward Price to Earnings RatioGo

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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