Small business,such as local business,personal finance,credit and real estate.
how to find the company cost of equity capital?
4Apr2008 Filed under: CorporationsQuestion:
how to find the company cost of equity capital?
Answer:
You can use the Capital Asset Pricing Model
r = Rf + beta x ( Km - Rf )
where
r is the expected return rate on a security;
Rf is the rate of a "risk-free" investment, i.e. 10 year Treasury Bond
Km is the return rate of the S&P 500
Resource related business question and answer:
Weighted average cost of capital - Wikipedia, the free encyclopedia
The weighted average cost of capital (WACC) is the rate that a company is expected to ... How do we find out the values of the ... weight of common equity × cost of common equityOnline Tutorial #8: How Do You Calculate A Company's Cost of Capital?
To calculate any company's cost of equity capital, we need to find a reliable source for each of these inputs: 1. Risk-free Rate. We suggest using the rate of return on long-term ...People Also View other Questions
- What is the tax rate on silver bullion? Is it treated like a collectible (28%)? Or 15% capital gains tax rate?
- What is the difference between "Barclays Global Investors" and "Barclays capital"?
- What is the guideline for paying capital gain when you cash out a mutual fund?
- I wish to know the names of the various venues of long term capital gain investment under section 54EC in Indi
- what is the cost basis for an israel bond that matured in 2005?
- What is the entry for a donation?
- Why is the Weighted Average Cost of Capital so earth-shattering?
- I want address of Actis Asset Reconstruction Company Private Limited?
- What is the relevance of the concept of "par value"?
- Is it possible that a public company to elevate possessions from a minor bazaar?
About Business Question & Answers
All business info,here are more and more business questions and answers,you will find some information about small business.Also not only you can ask someone to settle your small business problems but also you will give some answers what you have known.Of cource,please be kindly noted: our site is a plat for yours,small business questions and answers in our website are offered by user.
Answer This Question