Home › Finance Formulas › Eps Ratio Formula › Theories Dividend Powerpoint Slides Eps Ratio Formula Presentation Final And Get Copy Your Email What Good Earnings Per Share Average Stock Define Profit Earning Equation Negative

Finance Formulas / July 13, 2018 / Iliana Williamson

The cost of equity can be a bit tricky to calculate as share capital carries no "explicit" cost. Unlike debt, which the company must pay in the form of predetermined interest, equity does not have a concrete price that the company must pay, but that doesn't mean no cost of equity exists.

So how do you know if you’re spending the right amount? You need some numbers. First, you need to know how long the average customer sticks with you before they cancel their service. Because of course the longer a customer sticks with you, the more valuable they are.

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