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Q » Explain cost of equity.
06 Dec, 2025
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A » Cost of equity is the expected return that investors require for investing in a company's equity, compensating for the risk of ownership. It represents the opportunity cost of investing capital elsewhere and is calculated using models like the Capital Asset Pricing Model (CAPM). The cost of equity is a crucial component in valuing a company and assessing financial viability, as it influences investment decisions and capital structure strategies.
06 Dec, 2025
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