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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SECURED TRANSACTION is the right to repossess goods as security for payment of a debt.

DISCOUNTING is the selling of accounts receivable, usually at less than full value, to a financial entity.

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