Cost of Equity Using the DCF Approach

Cost of Equity
Knowledge Center

 

Next Topic

Cost of Equity > Forum > Cost of Equity Using the DCF Approach

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.
 

     

Read all responses and join this discussion yourself.
Support your career and personal development with 12manage, the management platform.

    Log in


Special Interest Group Leader

Interested? Sign up for free.


Cost of Equity
Summary
Forum
Best Practices


    Cost of Equity
    Knowledge Center

     

    Next Topic



    About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
    2019 12manage - The Executive Fast Track. V15.2 - Last updated: 18-11-2019. All names of their owners.