Cost of Equity Using the DCF Approach


 
Cost of Equity > Forum

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, Student (MBA), India, 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....Sign up
 

   

Special Interest Group Leader

Interested? Sign up for free.


Cost of Equity
Summary
Forum
Best Practices

Expert Tips

Resources
 



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.0 - Last updated: 20-2-2019. All names of their owners.