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An introduction to the cost of equity and CAPM
I should stress, that equity is not free. Investors want a return. That return is a cost to the firm. (even though it does not appear on the income statement).
CAPM is a common way to estimate the cost.
REMEMBER, THIS IS AN INTRODUCTION. It is meant to go with your textbook and class notes.
By jim maharAn introduction to the cost of equity and CAPM
I should stress, that equity is not free. Investors want a return. That return is a cost to the firm. (even though it does not appear on the income statement).
CAPM is a common way to estimate the cost.
REMEMBER, THIS IS AN INTRODUCTION. It is meant to go with your textbook and class notes.