COST OF EQUITY Definition

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COST OF EQUITY (COE) is the minimum rate of return a firm must offer owners to compensate for waiting for their returns, and for bearing risk. It is calculated: COE = Dividends per Share (for next year) / Current Market Value of Stock + Growth Rate of Dividends.

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VALUATION APPROACH is a general way of determining a value indication of a business, business ownership interest, security, or intangible asset using one or more valuation methods.

CASH BILL is a documented receipt of cash payment as opposed to an invoice or promise to pay.

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