Cost of Equity definition

Cost of Equity means the product of Average Shareholders’ Equity and 8.8%, which is the sum of the 3.3% yield on the 10-year Treasury Notes as of December 31, 2010, as published by the U.S. Federal Reserve, plus an equity return premium of 5.5%.
Sample 1Sample 2
Cost of Equity means the sum of (A) 9.4% (i.e. the average 5-year Treasury rate during the 30 days immediately preceding January 1, 2011, plus 7.5%) times that portion of the shareholders’ equity on January 1, 2011 attributable to the Company’s issued and outstanding common stock, plus (B) $0.1376 times the number of shares of issued and outstanding preferred stock on January 1, 2011. The Cost of Equity for 2011 equals $15,250,754.
Sample 1Sample 2Sample 3
Cost of Equity means the Company's imputed equity cost based on a formula approved by the Committee prior to the start of the Plan Year.
Sample 1Sample 2

Examples of Cost of Equity in a sentence

  • Vinson, The Risk Premium Approach to Measuring a Utility’s Cost of Equity, Financial Management, Spring 1985, at 33-45; and Farris M.

  • To ensure viability of airport investment, it is standard practice to provide a reasonable return to investors by charging airport users an appropriate tariff.The Airports Economic Regulatory Authority (AERA) was established in 2008 for fixing aero tariffs and User Development Fee (UDF) at different airports.1 AERA uses the Capital Asset Pricing Model (CAPM) to determine the Cost of Equity (CoE) and hence the FRoR.

  • Mr. Hevert concluded based on the analyses discussed throughout his direct and rebuttal testimony, the reasonable range of ROE estimates is from 10.00 percent to 10.75 percent, and within that range, 10.50 percent is a reasonable and appropriate estimate of I&M’s Cost of Equity.

  • He stated although those factors are very relevant to investors, their effect on the Company’s Cost of Equity cannot be directly quantified.

  • Cost of Equity The equity component of the rate of return as approved by the (“CE”) Department in the Company’s most recent base rate case.

  • Reference: (N.I.T No.) Dear Sir / Madam,Having examined the Statutory, Non-statutory and NIT documents; I/We hereby submit all the necessary information and relevant documents for evaluation.

  • Vinson, The Risk Premium Approach to Measuring a Utility’s Cost of Equity, Financial Management, (Spring 1985), at 33-45; and Farris M.

  • He said although Mr. Gorman suggests the Cost of Equity has fallen to a level that supports his recommendation, observable data does not support this position.

  • After that, that value was discounted to present by using Cost of Equity (Ke) of NUSA and got a value of 711.20 THB per share.

  • Meaning and Significance of Cost of Capital - Calculation of Cost of Debt: Preference Capital, Equity Capital, and Retained Earnings - Cost of Equity and CAPM - Combined Cost of Capital (weighted).


More Definitions of Cost of Equity

Cost of Equity means the rate of return a shareholder requires for investing equity into a business;
Sample 1Sample 2Sample 3
Cost of Equity means the Corporation's imputed equity cost based on a formula approved by the Bonus Committee prior to the start of the year. For 1997, the cost of equity will be determined by adding (a) the Corporation's risk premium (the long-term market growth in equity securities over the risk-free rate multiplied by the Corporation's beta) and (b) the trend risk-free rate.
Sample 1

Related to Cost of Equity

  • Cost of Services is FASC’s total Operating Costs incurred in providing the applicable Category of Services during the month to all investment advisers for which FASC provides that Category of Services. “Adviser’s Assets under Management” is the total average assets under management for the month for all Accounts or portions thereof for which the Adviser acts as investment adviser or subadvisor and which utilize the Category of Services.

  • Adjusted Total Assets means, for any Person, the sum of:

  • Total Assets as of any date means the sum of (i) the Undepreciated Real Estate Assets and (ii) all other assets of the Company and its Subsidiaries determined in accordance with GAAP (but excluding accounts receivable and intangibles).

  • Consolidated Total Assets means, at any time, the total assets of the Borrower and its Consolidated Subsidiaries, determined on a consolidated basis, as set forth or reflected on the most recent consolidated balance sheet of the Borrower and its Consolidated Subsidiaries, prepared in accordance with GAAP.

  • Supplier Profit Margin means, in relation to a period, the Supplier Profit for the relevant period divided by the total Charges over the same period in respect of any Call Off Agreements and expressed as a percentage;

  • net non-operating income means the difference between: (A) revenues from all sources other than those related to operations; and (B) expenses, including taxes and payments in lieu of taxes, incurred in the generation of revenues in (A) above.

  • Gross Profits means the gross profits calculated under section 4;

  • Operating Income means the Company’s or a business unit’s income from operations but excluding any unusual items, determined in accordance with generally accepted accounting principles.