The cost of equity capital is the return required by

Question

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The cost of equity capital is the return required by the stockholders. These are the investors who have purchased shares of the company and are the owners of the business. They expect a certain return on their investment, which is the cost of equity capital. Preferred shareholders and creditors have their own required returns, but they are not the same as the cost of equity capital. Financial institutions do not have a direct interest in the return on equity for a particular company.

The Cost of Equity Capital Is the Return Required by