Skip to main content
assistive.skiplink.to.breadcrumbs
assistive.skiplink.to.header.menu
assistive.skiplink.to.action.menu
assistive.skiplink.to.quick.search

Cost of equity

Created by Arthur Aslanyan (Nafta College), last modified on Sep 26, 2019

You are viewing an old version of this page. View the current version.

Compare with Current View Page History

Potential interest rate on the shareholders equity:

$\begin{array}{l}\displaystyle K_D = R_f + \beta \, R_p\end{array}$

where

$\begin{array}{l}R_f\end{array}$	risk-free bond
$\begin{array}{l}R_p\end{array}$	risk premium
$\begin{array}{l}\beta\end{array}$	sensitivity to market risk for the security

See also

Business / Business Administration / Financial Management / Financial Accounting /

No labels