How Can We Calculate Cost Of Equity Without Using Capm?

1.	How Can We Calculate Cost Of Equity Without Using Capm?
Answer» There is an ALTERNATE formula: Cost of Equity = (Dividends per Share / Share Price) + GROWTH Rate of Dividends This is less common than the "standard" formula but sometimes you use it for companies where dividends are more important or when you lack proper INFORMATION on BETA and the other VARIABLES that go into calculating Cost of Equity with CAPM. There is an alternate formula: Cost of Equity = (Dividends per Share / Share Price) + Growth Rate of Dividends This is less common than the "standard" formula but sometimes you use it for companies where dividends are more important or when you lack proper information on Beta and the other variables that go into calculating Cost of Equity with CAPM.

Answer»

There is an ALTERNATE formula:

Cost of Equity = (Dividends per Share / Share Price) + GROWTH Rate of Dividends

This is less common than the "standard" formula but sometimes you use it for companies where dividends are more important or when you lack proper INFORMATION on BETA and the other VARIABLES that go into calculating Cost of Equity with CAPM.

There is an alternate formula:

Cost of Equity = (Dividends per Share / Share Price) + Growth Rate of Dividends

This is less common than the "standard" formula but sometimes you use it for companies where dividends are more important or when you lack proper information on Beta and the other variables that go into calculating Cost of Equity with CAPM.

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