Understanding the cost of equity formula
28 Jan 2026
28 Jan 2026
9 min. read
| Cost of debt | Cost of equity |
|---|---|---|
Typical cost | 5-10% | 8-15% |
Repayment obligation | Yes | No |
Tax benefits | Yes | No |
Impact on ownership | None | Dilutes shares |
| Cost of debt | Cost of equity |
|---|---|---|
Typical cost | 5-10% | 8-15% |
Repayment obligation | Yes | No |
Tax benefits | Yes | No |
Impact on ownership | None | Dilutes shares |