A firm’s cost of equity represents the compensation that the market demands in exchange for owning the asset and bearing the risk of ownership. The traditional formula for the cost of equity is ...

The cost of equity formula is a financial metric that represents the return investors expect for holding a company's stock. This formula can help you evaluate whether a company's stock is ...

"The formula uses the cost of each of the sources of capital ... The cost of equity is the return that a business pays out to its equity investors. In other words, it is the expense that a company ...