cost-of-equity
%
%
Formula
Ke = Rf + β × (Rm - Rf)
Capital Asset Pricing Model (CAPM) for cost of equity.
Examples
Rf=4.5%, β=1.2, Rm=10%
Ke = 11.1%.
Frequently Asked Questions
About cost-of-equity
Calculate cost of equity using the CAPM model.
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