Words / C / Business

cost of equity

noun

B2CEFR level
60/100Rarity: rare
TechnicalRegister

The return that shareholders require for bearing the risk of investing in a company's equity.

Because the business carries no debt, its cost of equity is effectively its overall cost of capital.

Topic: Corporate finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Corporate finance