Cost of common stock
Cost of common stock, rs, is the return required by the firm's common stockholders. It is usually calculated using Capital Asset Pricing Model or the dividend growth model.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Cost of common stock, rs. The return required by the firm's common stockholders. It is usually calculated using Capital Asset Pricing Model or the dividend growth model.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
