Cost of Equity Calculator

Cost of Equity Calculator

Cost of Equity Calculator

Parameter Description Example Value
Risk-Free Rate The return on risk-free investments (e.g., government bonds). 2%
Beta The volatility measure of a stock compared to the market. 1.2
Market Risk Premium The additional return expected from holding a risky market portfolio instead of risk-free assets. 5%
Cost of Equity The return required by equity investors (Risk-Free Rate + Beta * Market Risk Premium). 8%

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top