Cost of Equity

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Definitions
Cost of Equity
Cost of Equity Shareholders Return on Investment Total Cost of Capital Opportunity Cost Dividend Growth Financial Metrics
The rate of return that a company's shareholders expect for holding stock in that company, used as part of the calculation of the total cost of capital for a firm. It represents the opportunity cost to investors of holding shares. The cost can be calculated by a formula dividing dividends per share by the current market value and adding the dividend growth rate.
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Definitions
Weighted Average Cost of Capital (WACC)
Weighted Average Cost of Capital Corporate Finance Capital Cost Investment Decisions Financial Analysis Cost of Debt Cost of Equity
A financial metric used to gauge the average cost of capital by weighting each capital component proportionally.
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