--%>
Assignment Help - homework help

Describe cost of equity shares

Briefly describe cost of equity shares? And also write down way to evaluate the cost of equity shares?

E

Expert

Verified

Cost of equity share is the division of cost of capital that permits the payment to only the equity shareholders. Within this every shareholders get the shares for getting the return on the shares on that they are investing so much. From company's viewpoint the company should earn more than cost of equity capital so as to be unaffected by the market value of the shares of its.

To evaluate the cost of equity shares we have to follow the subsequent way:-

i) Price ratio method or Dividend yield method

In this the least rate of cost of equity shares will be equivalent to the “current value of prospect dividend per share with present price of a share”.

Cost of equity shares= Dividend per equity/ Market price

   Related Questions in Business Economics

  • Q : Productive capacity After the Spanish

    After the Spanish found the new world, they promptly began to plunder this. They imported huge amount of gold and silver to Spain. It inflow of bullion caused a rapid increase in inflation, that would have grave consequences for Spain. It is quick inflation made this

    		•
  • Q : Explain producers in an industry

    Explain producers in an industry are receiving pure or economic profits?

    		•
  • Q : External factors which influencing the

    Write down the external factors which influencing the capital structure?

    		•
  • Q : Cooperative and non-cooperative outcome

    Question: Cineplex and AMC are two rival movie theatre chains. They must each decide whether to set an admission price of $10 or set an admission price of $12; of course, the number of movie goers (and thus their r

    		•
  • Q : Divide of the study of economics MOST

    The study of economics is MOST frequently divided within: (1) positive economics and negative economics. (2) macroeconomics and microeconomics. (3) subjective economics and objective economics. (4) supply side and demand side economics. (5) conservative economics and

    		•
  • Q : Important source of revenue and major

    What is the most important source of revenue and the major type of expenditure at the Federal level?

  • Q : Problem on private resource ownership

    Relative to most of the other countries, the United States encompasses historically relied more greatly on: (1) Public resource ownership and private income distribution. (2) Decentralized decision making and private resource ownership. (3) Exports of textiles, automo

    		•
  • Q : Discuss the economic aspects of ticket

    Discuss the economic aspects of ticket scalping also identifying the gainers and losers?

    		•
  • Q : Write short note Economics Write short

    Write short note Economics?

    		•
  • Q : Illustrate the Optimal or best

    Illustrate the Optimal or best product-mix and also Law of increasing opportunity costs?

    		•