Dividend Price Plus Growth Approach:
The cost of equity is calculated on the basis of the expected dividend rate per share plus growth in dividend. It can be measured with the help of the following formula:
Ke = (D / Np) + g
Where,
Ke = Cost of equity capital
D = Dividend per equity share
g = Growth in expected dividend
Np = Net proceeds of an equity share
The cost of equity is calculated on the basis of the expected dividend rate per share plus growth in dividend. It can be measured with the help of the following formula:
Ke = (D / Np) + g
[Post Image Courtesy of AtiBodyPhoto at FreeDigitalPhotos.net]
Where,
Ke = Cost of equity capital
D = Dividend per equity share
g = Growth in expected dividend
Np = Net proceeds of an equity share
Dividend Price Plus Growth Approach
![Dividend Price Plus Growth Approach]()
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Friday, April 28, 2017
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