Cost of Equity Using the DCF Approach

12manage is looking for contributors...


 
Cost of Equity > Forum Log in

Cost of Equity Using the DCF Approach
Rose
What is the cost of equity if the D1 =$1.00, Po $25, divident payout ratio is 30% and ROE is 20%?
 

 
Re:
harkaran atwal, Member
D1=$1
Payout ratio=30%
So, E. P. S.=$1/.3= $3.33
Cost of equity= E. P. S./ po= 3.33/25 = 13.33%
Hope this answers your querry.
 

 











 

  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  


Special Interest Group Leader

You here


More on Cost of Equity
Summary
Forum
Best Practices

Expert Tips

Resources



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 21-7-2018. All names of their owners.