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  • Cost of Equity

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    suriganesh007
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    COST OF EQUITY

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    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    8 views3 pages

    Cost of Equity

    Uploaded by

    suriganesh007

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 3

    Ke= (D/NP)+g Ke= (D/NP)+g

    External : Internal :
    D= 4.75 , D= 4.75 ,
    N.P=95, N.P=100,
    g= 6% or 0.06 g= 6% or 0.06
    Ke = (4.75/95)+ 0.06 Ke = (4.75/100)+ 0.06
    Ke = 0.05+0.06 Ke = 0.0475+0.06
    Ke = 0.11 or 11% Ke = 0.1075 or 10.75%
    Ke= (E/NP) Ke= (E/NP)

    E= 10 , E = 10 ,
    N.P=92-2 = 90, N.P = 100,
    Ke = (10/90) Ke = (10/100)
    Ke = 0.11 or 11% Ke = 0.10 or 10%

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