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Our estimate of the rate of return required by equity holders.
Cost of Equity is the return (often expressed as a rate of return) a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake by investing their capital.
We estimate Cost of Equity using the Capital Asset Pricing Model (CAPM).
Read More: https://finbox.com/AMEX:EVM/explorer/capm
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