COST OF EQUITY

COST OF EQUITY

The cost of equity is the return a company requires to decide if an investment meets
capital return requirements.
Cost of equity represents the compensation the market demands in exchange for
owning the asset and bearing the risk of ownership.
Cost of equity is higher than debt, equity generally provides a higher rate return than
debt.
 TYPE OF EQUITY

EQUITY ACCOUNT FOR EQUITY ACCOUNTS FOR

CORPORATIONS PARTNERSHIPS

Common stock Capital

Additional paid-in capital Drawings
Retained earnings.
Treasury stock
INVESTMENT -COST OF EQUITY
The graph illustrated dramatic growth in 2013 until 2017
Investments made within the next 5 years of 74.97% return equity.
so the investment Rm 650,000 can be growing until RM 1,137,305.00.
Average return on investment per year RM 227,461.
This is example of rate equity the company Facebook and yahoo in 1 years.
Based on the result yahoo is a higher than Facebook but Facebook are fairly stable with
Beta of 0.68 better than yahoo 1.9007 beta.