The cost of equity is equal to the: a. Expected market return. b. Rate of return required
Question:
a. Expected market return.
b. Rate of return required by stockholders.
c. Cost of retained earnings plus dividends.
d. Risk the company incurs when financing.
Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the...
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Related Book For 
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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