cost of capital

This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.

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October 31, 2014 at 12:33 pm #206979
Ashwin
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Sir, do we use abbreviation “ke” for Shareholders required return OR cost of equity?
November 1, 2014 at 10:29 am #207072
John Moffat
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Ke is shareholders required rate of return.

The cost of equity is always equal to the shareholders required rate of return. Whatever return that shareholders require is the return that the company has to give.
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