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@wikipedia


Shareholders' expectation on the annual return rate on its equity in the Business

LaTeX Math Block
alignmentleft
K_E = Return/E\frac{\rm Return}{\rm E}

where

LaTeX Math Inline
body\rm Return

annual cash return , whether as dividends or as capital growth 

LaTeX Math Inline
body\rm E


The most popular model of estimating the the Cost of Equity is Capital Asset Pricing Model (CAPM):

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Capital Asset Pricing Model = CAPM
Capital Asset Pricing Model = CAPM
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See also

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Business / Business Administration / Financial Management / Financial Accounting 

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