Equity Beta definition
Equity Beta. The asset beta adjusted upwards to take account of the additional risks faced by a geared firm. Small Company Premium: Small companies can be considered a higher risk than larger companies, sometimes requiring a greater return for investors. Cost of Equity: The sum of the risk free rate and the small company premium, plus the equity beta, multiplied by the equity risk premium. Gearing: The extent to which a company is funded by debt. Cost of Capital: A weighted average cost of debt and equity. INTRODUCTION
Equity Beta means a measure of the volatility of a given stock’s price movement relative to the overall market’s movement;
Examples of Equity Beta in a sentence
Value Equity Beta (3) Beta (4) ------------------------------------------------------------------------------------------------------ Billing Concepts Corp.