The traditional formula for the cost of equity is the dividend capitalization model and the capital asset pricing model (CAPM). The cost of equity is the return that a company requires for an ...

One common formula used to calculate the cost of equity is the capital asset pricing model (CAPM). The CAPM formula is: Cost of Equity = Risk-Free Rate + (Beta * Market Risk Premium) Several ...

The cost of equity funding is generally determined using the capital asset pricing model (CAPM). This formula utilizes the ...

Mullins, David W., Jr. "Financial Leverage, the Capital Asset Pricing Model and the Cost of Equity Capital." Harvard Business School Background Note 280-100, March 1980. (Revised October 1980.) ...