Cost of retained earnings

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				              Cost of retained earnings

			                shraddha

			                My question is how to calculate cost of capital in case a company has its funds only through equity shares & its reserves?

Then how to calculate cost of retained earnings (reserves). As it is a major constituent of company's long term funds.
			            
			                  	Reply to Question Regarding Retained Earnings
														
bhavik, Student (MBA), India, Member
The retained earnings can be calculated as follows:

K'E(i.e. Cost of retained earnings) = KE * (1 - F)

Where KE = Cost of Equity, F = Flotat...

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