cost of equity
noun[S]
ukusECONOMICS,FINANCE
theamountthat acompanymustpayout individendsonshares:
Thecostofequityisimportantwhenvaluingnewinvestmentopportunities.
Examplesofcost of equity
cost of equity
The same relationship as earlier described stating that thecostofequityrises with leverage, because the risk to equity rises, still holds.
From
This example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Thecostofequityis therefore "inferred" by comparing the investment to other investments (comparable) with similar risk profiles to determine the marketcostofequity.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.