Cost of Equity Using the DCF Approach

Cost of Equity > Forum Log in

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

harkaran atwal, Student (MBA), India
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
Best Practices

Expert Tips


About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2017 12manage - The Executive Fast Track. V14.1 - Last updated: 11-12-2017. All names tm by their owners.