Cost of Equity Calculator Online.

Cost of Equity Calculator

Cost Of Equity Calculator

The Cost Of Equity is equal to the amount of dividend per one share that will be paid next year. Divided to present value on the stock exchange added to Growth rate (%) Value between past dividend.

let us considers

1.)Dividend per share(DPS) – the amount of dividend per will be paid next year;

2.)Current market value(CMV) – the present value on the stock exchange; and

3.)Growth rate of dividend(GRD) – the change in % value between the current and past dividend.

The Formula As,

Cost of Equity = (DPS / CMV) + GRD

Example for Cost of Equity,

Divided per share ($3), Current Market Value(80$) ,Growth rate 5%

Cost of Equity=($3/80$)+5%

The answer is Cost Of Equity =8.75%


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