The cost of equity represents the compensation the market demands in owning the stock.
Cost of Equity = Growth Rate of Dividends + (Dividends per Share / Current Market Value of the Stock)
- Wikipedia – Cost of Equity & Cost of Capital – A pair of explanations of cost of equity and how it is calculated.
- Accounting Tools – Cost of equity formula – An overview of the formula to find cost of equity.
- XplainD – Cost of Equity – Some examples for calculating cost of equity.
- Investopedia – Cost of Equity – What cost of equity is and how it can be calculated.