Realized Yield Approach:
It is the easy method for calculating cost of equity capital. Under this method, cost of equity is calculated on the basis of return actually realized by the investor in a company on their equity capital.
Ke = PVf × D
Where,
Ke = Cost of equity capital.
PVƒ = Present value of discount factor.
D = Dividend per share.
It is the easy method for calculating cost of equity capital. Under this method, cost of equity is calculated on the basis of return actually realized by the investor in a company on their equity capital.
Ke = PVf × D
[Post Image Courtesy of Adamr at FreeDigitalPhotos.net]
Where,
Ke = Cost of equity capital.
PVƒ = Present value of discount factor.
D = Dividend per share.
Realized Yield Approach
![Realized Yield Approach]()
Reviewed by Blog Editor
on
Sunday, April 30, 2017
Rating:
Posts
No comments:
Do you have any reasonable comments for this post ? Please feel free to drop them below using the comment box. We will moderate and publish them as soon as possible. Cheers !