Cost of Equity (COE) – The Most Important Element in Appraising Value of Common Stocks
The cost of equity capital (COE), from IDC Financial Publishing, Inc.’s (IDCFP) viewpoint, is calculated as the 30-year T-Bond yield plus one-half of the 30-year T-Bond yield (for equity premium) plus 20% of the standard deviation of return on equity (for specific equity risk) for a stock market index, such…