{"product_id":"cost-of-equity","title":"Cost of Equity Calculator","description":"\u003cstyle\u003e\n.coe-calculator {\n  --ink: #0f172a;\n  --muted: #475569;\n  --border: #e2e8f0;\n  --surface: #ffffff;\n  --tint: #f8fafc;\n  --primary: #1d4ed8;\n  --accent: #c2410c;\n  --accent-hover: #9a3412;\n  --chart-1: #1e40af;\n  --chart-2: #0d9488;\n  --chart-3: #7c3aed;\n  --chart-4: #be185d;\n  --chart-5: #334155;\n  color: var(--ink);\n  background: var(--surface);\n  container-name: coe;\n  container-type: inline-size;\n  border: 1px solid var(--border);\n  border-radius: 8px;\n  box-shadow: 0 1px 2px rgba(15, 23, 42, .06);\n  font-family: Inter, ui-sans-serif, system-ui, -apple-system, BlinkMacSystemFont, \"Segoe UI\", sans-serif;\n  font-size: 15px;\n  line-height: 1.55;\n  margin: 0 auto;\n  max-width: 1200px;\n  overflow-wrap: anywhere;\n  padding: 24px;\n  width: 100%;\n}\n.coe-calculator,\n.coe-calculator *,\n.coe-calculator *::before,\n.coe-calculator *::after {\n  box-sizing: border-box;\n}\n.coe-calculator [hidden] {\n  display: none !important;\n}\n.coe-calculator a {\n  color: var(--primary);\n  text-decoration-thickness: 1px;\n  text-underline-offset: 3px;\n}\n.coe-calculator a:hover {\n  color: #1e40af;\n}\n.coe-calculator button,\n.coe-calculator input {\n  font: inherit;\n}\n.coe-calculator button,\n.coe-calculator input,\n.coe-calculator label,\n.coe-calculator fieldset,\n.coe-calculator section,\n.coe-calculator article,\n.coe-calculator div {\n  min-width: 0;\n}\n.coe-header {\n  border-bottom: 1px solid var(--border);\n  display: grid;\n  gap: 12px;\n  padding-bottom: 20px;\n}\n.coe-title {\n  font-size: 24px;\n  font-weight: 700;\n  letter-spacing: -.02em;\n  line-height: 1.2;\n  margin: 0;\n}\n.coe-subtitle {\n  color: var(--muted);\n  margin: 0;\n  max-width: 780px;\n}\n.coe-pills {\n  display: flex;\n  flex-wrap: wrap;\n  gap: 8px;\n}\n.coe-pill {\n  align-items: center;\n  background: var(--tint);\n  border: 1px solid var(--border);\n  border-radius: 999px;\n  color: var(--muted);\n  display: inline-flex;\n  font-size: 13px;\n  font-weight: 500;\n  gap: 6px;\n  line-height: 1.25;\n  padding: 6px 10px;\n}\n.coe-pill strong {\n  color: var(--ink);\n  font-variant-numeric: tabular-nums;\n  font-weight: 700;\n}\n.coe-toolbar {\n  align-items: center;\n  display: flex;\n  flex-wrap: wrap;\n  gap: 10px;\n  padding: 16px 0 24px;\n}\n.coe-button {\n  align-items: center;\n  border: 1px solid transparent;\n  border-radius: 6px;\n  cursor: pointer;\n  display: inline-flex;\n  font-size: 15px;\n  font-weight: 650;\n  gap: 10px;\n  justify-content: center;\n  line-height: 1.2;\n  min-height: 46px;\n  padding: 12px 18px;\n  text-decoration: none;\n  transition: background-color .16s ease, border-color .16s ease, box-shadow .16s ease, transform .16s ease;\n  white-space: nowrap;\n}\n.coe-button:hover {\n  box-shadow: 0 2px 6px rgba(15, 23, 42, .12);\n  transform: translateY(-1px);\n}\n.coe-button:active {\n  transform: translateY(0);\n}\n.coe-button:focus-visible,\n.coe-calculator input:focus-visible {\n  outline: 3px solid rgba(29, 78, 216, .35);\n  outline-offset: 2px;\n}\n.coe-download {\n  background: var(--accent);\n  color: #ffffff;\n}\n.coe-download:hover,\n.coe-download:active {\n  background: var(--accent-hover);\n}\n.coe-reset {\n  background: var(--surface);\n  border-color: #94a3b8;\n  color: var(--ink);\n}\n.coe-reset:hover {\n  background: var(--tint);\n  border-color: #64748b;\n}\n.coe-button-icon {\n  display: block;\n  flex: 0 0 auto;\n  height: 18px;\n  width: 18px;\n}\n.coe-workspace {\n  display: grid;\n  gap: 24px;\n  grid-template-columns: minmax(0, 1fr) minmax(0, 1fr);\n}\n.coe-panel,\n.coe-section {\n  background: var(--surface);\n  border: 1px solid var(--border);\n  border-radius: 8px;\n  box-shadow: 0 1px 2px rgba(15, 23, 42, .04);\n  min-width: 0;\n}\n.coe-panel {\n  padding: 20px;\n}\n.coe-panel-title,\n.coe-section-title {\n  font-size: 18px;\n  font-weight: 650;\n  letter-spacing: -.01em;\n  line-height: 1.3;\n  margin: 0;\n}\n.coe-panel-intro,\n.coe-section-intro {\n  color: var(--muted);\n  margin: 6px 0 0;\n}\n.coe-method {\n  border: 0;\n  margin: 20px 0 0;\n  padding: 0;\n}\n.coe-method-legend {\n  font-size: 14px;\n  font-weight: 600;\n  margin-bottom: 8px;\n  padding: 0;\n}\n.coe-segmented {\n  background: var(--tint);\n  border: 1px solid var(--border);\n  border-radius: 7px;\n  display: grid;\n  gap: 4px;\n  grid-template-columns: repeat(2, minmax(0, 1fr));\n  padding: 4px;\n}\n.coe-segmented-option {\n  min-width: 0;\n  position: relative;\n}\n.coe-segmented-option input {\n  height: 1px;\n  opacity: 0;\n  position: absolute;\n  width: 1px;\n}\n.coe-segmented-option label {\n  align-items: center;\n  border: 1px solid transparent;\n  border-radius: 5px;\n  cursor: pointer;\n  display: flex;\n  font-size: 14px;\n  font-weight: 650;\n  justify-content: center;\n  min-height: 42px;\n  padding: 8px 12px;\n  text-align: center;\n}\n.coe-segmented-option input:checked + label {\n  background: var(--surface);\n  border-color: #94a3b8;\n  box-shadow: 0 1px 2px rgba(15, 23, 42, .08);\n  color: var(--primary);\n}\n.coe-segmented-option input:focus-visible + label {\n  outline: 3px solid rgba(29, 78, 216, .35);\n  outline-offset: 2px;\n}\n.coe-fields {\n  display: grid;\n  gap: 16px;\n  grid-template-columns: repeat(2, minmax(0, 1fr));\n  margin-top: 20px;\n}\n.coe-field {\n  display: flex;\n  flex-direction: column;\n  min-width: 0;\n}\n.coe-field-wide {\n  grid-column: 1 \/ -1;\n}\n.coe-label {\n  color: var(--ink);\n  display: block;\n  font-size: 14px;\n  font-weight: 600;\n  margin-bottom: 6px;\n}\n.coe-control {\n  background: var(--surface);\n  border: 1px solid #94a3b8;\n  border-radius: 6px;\n  color: var(--ink);\n  font-size: 15px;\n  font-variant-numeric: tabular-nums;\n  height: 44px;\n  line-height: 1.2;\n  padding: 10px 12px;\n  width: 100%;\n}\n.coe-control:hover {\n  border-color: #64748b;\n}\n.coe-control[aria-invalid=\"true\"] {\n  border-color: #b91c1c;\n}\n.coe-helper {\n  color: var(--muted);\n  font-size: 13px;\n  font-weight: 500;\n  line-height: 1.35;\n  margin: 6px 0 0;\n  min-height: 35px;\n}\n.coe-error {\n  color: #991b1b;\n  font-size: 13px;\n  font-weight: 600;\n  line-height: 1.35;\n  margin: 4px 0 0;\n  min-height: 18px;\n}\n.coe-result-panel {\n  display: flex;\n  flex-direction: column;\n  gap: 16px;\n}\n.coe-primary-result {\n  background: var(--tint);\n  border: 1px solid var(--border);\n  border-radius: 8px;\n  padding: 20px;\n}\n.coe-primary-label {\n  color: var(--muted);\n  font-size: 13px;\n  font-weight: 600;\n  margin: 0 0 4px;\n}\n.coe-primary-value {\n  color: var(--ink);\n  font-size: 30px;\n  font-variant-numeric: tabular-nums;\n  font-weight: 700;\n  letter-spacing: -.03em;\n  line-height: 1.12;\n  margin: 0;\n}\n.coe-primary-method {\n  color: var(--muted);\n  font-size: 13px;\n  font-weight: 500;\n  margin: 8px 0 0;\n}\n.coe-result-grid {\n  display: grid;\n  gap: 12px;\n  grid-template-columns: repeat(3, minmax(0, 1fr));\n}\n.coe-result-card {\n  border: 1px solid var(--border);\n  border-radius: 8px;\n  padding: 14px;\n}\n.coe-result-card-label {\n  color: var(--muted);\n  font-size: 13px;\n  font-weight: 600;\n  line-height: 1.35;\n  margin: 0;\n}\n.coe-result-card-value {\n  color: var(--ink);\n  font-size: 20px;\n  font-variant-numeric: tabular-nums;\n  font-weight: 700;\n  line-height: 1.25;\n  margin: 6px 0 0;\n}\n.coe-interpretation {\n  background: #eff6ff;\n  border: 1px solid #bfdbfe;\n  border-radius: 6px;\n  color: #1e3a8a;\n  margin: 0;\n  padding: 12px;\n}\n.coe-formula {\n  background: var(--tint);\n  border: 1px solid var(--border);\n  border-radius: 6px;\n  color: var(--ink);\n  font-family: ui-monospace, SFMono-Regular, Menlo, Monaco, Consolas, monospace;\n  font-size: 13px;\n  font-variant-numeric: tabular-nums;\n  line-height: 1.5;\n  margin: 0;\n  padding: 12px;\n}\n.coe-section {\n  margin-top: 24px;\n  padding: 20px;\n}\n.coe-chart-cluster {\n  align-items: start;\n  display: grid;\n  gap: 24px;\n  grid-template-columns: minmax(0, 1.2fr) minmax(220px, .8fr);\n  margin: 20px auto 0;\n  max-width: 880px;\n}\n.coe-chart-card.coe-safe-stack .coe-chart-cluster {\n  gap: 24px;\n  grid-template-columns: minmax(0, 1fr);\n}\n.coe-chart-visual {\n  min-width: 0;\n}\n.coe-chart-svg {\n  display: block;\n  height: auto;\n  max-width: 100%;\n  overflow: visible;\n  width: 100%;\n}\n.coe-chart-empty {\n  align-items: center;\n  background: var(--tint);\n  border: 1px dashed #94a3b8;\n  border-radius: 6px;\n  color: var(--muted);\n  display: flex;\n  font-size: 14px;\n  font-weight: 600;\n  justify-content: center;\n  min-height: 112px;\n  padding: 20px;\n  text-align: center;\n}\n.coe-legend {\n  display: grid;\n  gap: 10px;\n}\n.coe-legend-row {\n  align-items: center;\n  display: grid;\n  gap: 8px 12px;\n  grid-template-columns: 12px minmax(0, max-content) max-content;\n  justify-content: start;\n}\n.coe-legend-swatch {\n  border-radius: 3px;\n  height: 12px;\n  width: 12px;\n}\n.coe-legend-label,\n.coe-legend-value {\n  font-size: 13px;\n  font-weight: 600;\n}\n.coe-legend-label {\n  color: var(--muted);\n}\n.coe-legend-value {\n  color: var(--ink);\n  font-variant-numeric: tabular-nums;\n}\n.coe-chart-caption {\n  background: var(--tint);\n  border: 1px solid var(--border);\n  border-radius: 6px;\n  color: var(--muted);\n  font-size: 13px;\n  font-weight: 500;\n  margin-top: 16px;\n  padding: 10px 12px;\n}\n.coe-chart-card.coe-safe-stack .coe-chart-caption {\n  margin-top: 20px;\n}\n.coe-table-wrap {\n  margin-top: 20px;\n  max-width: 100%;\n  overflow-x: auto;\n  overscroll-behavior-inline: contain;\n}\n.coe-table {\n  border-collapse: collapse;\n  min-width: 660px;\n  width: 100%;\n}\n.coe-table th,\n.coe-table td {\n  border-bottom: 1px solid var(--border);\n  padding: 11px 12px;\n  text-align: left;\n  vertical-align: top;\n}\n.coe-table th {\n  background: var(--tint);\n  color: var(--ink);\n  font-size: 13px;\n  font-weight: 700;\n}\n.coe-table td {\n  color: var(--muted);\n  font-size: 14px;\n}\n.coe-table td.coe-number,\n.coe-table th.coe-number {\n  font-variant-numeric: tabular-nums;\n  text-align: right;\n}\n.coe-table tr:last-child td {\n  border-bottom: 0;\n}\n.coe-table-note {\n  background: var(--tint);\n  border: 1px solid var(--border);\n  border-radius: 6px;\n  color: var(--muted);\n  font-size: 13px;\n  font-weight: 500;\n  margin-top: 16px;\n  padding: 10px 12px;\n}\n.coe-table-card.coe-safe-table-stack .coe-table-note {\n  margin-top: 20px;\n}\n.coe-education {\n  border-top: 1px solid var(--border);\n  margin-top: 32px;\n  padding-top: 8px;\n}\n.coe-education h2 {\n  font-size: 22px;\n  font-weight: 700;\n  line-height: 1.3;\n  margin: 28px 0 10px;\n}\n.coe-education h3 {\n  font-size: 18px;\n  font-weight: 650;\n  line-height: 1.35;\n  margin: 24px 0 8px;\n}\n.coe-education p,\n.coe-education li {\n  color: #334155;\n}\n.coe-education p {\n  margin: 0 0 12px;\n}\n.coe-education ul {\n  margin: 8px 0 16px;\n  padding-left: 22px;\n}\n.coe-education li + li {\n  margin-top: 8px;\n}\n.coe-sr-only {\n  border: 0;\n  clip: rect(0 0 0 0);\n  height: 1px;\n  margin: -1px;\n  overflow: hidden;\n  padding: 0;\n  position: absolute;\n  white-space: nowrap;\n  width: 1px;\n}\n\n@container coe (max-width: 899px) {\n  .coe-workspace {\n    grid-template-columns: minmax(0, 1fr);\n  }\n}\n@container coe (max-width: 639px) {\n  .coe-toolbar {\n    align-items: stretch;\n    flex-direction: column;\n  }\n  .coe-button {\n    width: 100%;\n  }\n  .coe-fields,\n  .coe-result-grid,\n  .coe-chart-cluster {\n    grid-template-columns: minmax(0, 1fr);\n  }\n  .coe-field-wide {\n    grid-column: auto;\n  }\n  .coe-result-grid {\n    gap: 8px;\n  }\n  .coe-chart-cluster {\n    gap: 20px;\n  }\n  .coe-legend {\n    justify-content: center;\n  }\n}\n@container coe (max-width: 379px) {\n  .coe-panel,\n  .coe-section {\n    padding: 16px;\n  }\n  .coe-segmented-option label {\n    padding-inline: 8px;\n  }\n  .coe-legend-row {\n    gap: 6px 8px;\n    grid-template-columns: 12px minmax(0, 1fr) max-content;\n  }\n}\n@media (max-width: 899px) {\n  .coe-calculator {\n    padding: 20px;\n  }\n  .coe-workspace {\n    grid-template-columns: minmax(0, 1fr);\n  }\n}\n@media (max-width: 639px) {\n  .coe-calculator {\n    border-left: 0;\n    border-radius: 0;\n    border-right: 0;\n    padding: 16px;\n  }\n  .coe-toolbar {\n    align-items: stretch;\n    flex-direction: column;\n  }\n  .coe-button {\n    width: 100%;\n  }\n  .coe-fields,\n  .coe-result-grid,\n  .coe-chart-cluster {\n    grid-template-columns: minmax(0, 1fr);\n  }\n  .coe-field-wide {\n    grid-column: auto;\n  }\n  .coe-result-grid {\n    gap: 8px;\n  }\n  .coe-chart-cluster {\n    gap: 20px;\n  }\n  .coe-legend {\n    justify-content: center;\n  }\n  .coe-chart-caption {\n    margin-top: 16px;\n  }\n}\n@media (max-width: 379px) {\n  .coe-calculator {\n    padding: 12px;\n  }\n  .coe-panel,\n  .coe-section {\n    padding: 16px;\n  }\n  .coe-segmented-option label {\n    padding-inline: 8px;\n  }\n  .coe-legend-row {\n    gap: 6px 8px;\n    grid-template-columns: 12px minmax(0, 1fr) max-content;\n  }\n}\n\u003c\/style\u003e\n\u003cdiv class=\"coe-calculator\" data-calculator-root\u003e\n  \u003cheader class=\"coe-header\"\u003e\n    \u003ch2 class=\"coe-title\"\u003eCost of Equity Calculator\u003c\/h2\u003e\n    \u003cp class=\"coe-subtitle\"\u003eEstimate the return shareholders require using either the dividend-growth approach or the capital asset pricing model.\u003c\/p\u003e\n    \u003cdiv class=\"coe-pills\" aria-label=\"Live calculator summary\"\u003e\n      \u003cspan class=\"coe-pill\"\u003eMethod \u003cstrong class=\"coe-pill-method\"\u003eDividend growth\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"coe-pill\"\u003eCost of equity \u003cstrong class=\"coe-pill-cost\"\u003e5.86%\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"coe-pill\"\u003eComponents \u003cstrong class=\"coe-pill-components\"\u003e2\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"coe-pill\"\u003eStatus \u003cstrong class=\"coe-pill-status\"\u003eReady\u003c\/strong\u003e\u003c\/span\u003e\n    \u003c\/div\u003e\n  \u003c\/header\u003e\n\n  \u003cdiv class=\"coe-toolbar\" aria-label=\"Calculator actions\"\u003e\n    \u003cbutton class=\"coe-button coe-download\" type=\"button\"\u003e\n      \u003csvg class=\"coe-button-icon\" viewbox=\"0 0 24 24\" aria-hidden=\"true\"\u003e\n        \u003cpath fill=\"currentColor\" d=\"M11 3a1 1 0 0 1 2 0v10.59l3.3-3.3a1 1 0 1 1 1.4 1.42l-5 5a1 1 0 0 1-1.4 0l-5-5a1 1 0 1 1 1.4-1.42l3.3 3.3V3ZM5 19a1 1 0 0 1 1 1h12a1 1 0 1 1 0 2H6a2 2 0 0 1-2-2 1 1 0 0 1 1-1Z\"\u003e\u003c\/path\u003e\n      \u003c\/svg\u003e\n      \u003cspan\u003eDownload Excel\u003c\/span\u003e\n    \u003c\/button\u003e\n    \u003cbutton class=\"coe-button coe-reset\" type=\"button\"\u003eReset\u003c\/button\u003e\n  \u003c\/div\u003e\n\n  \u003cdiv class=\"coe-workspace\"\u003e\n    \u003csection class=\"coe-panel coe-input-panel\" aria-labelledby=\"coe-inputs-title\"\u003e\n      \u003ch3 class=\"coe-panel-title\" id=\"coe-inputs-title\"\u003eInputs\u003c\/h3\u003e\n      \u003cp class=\"coe-panel-intro\"\u003eChoose the model that best matches the company and enter forward-looking assumptions.\u003c\/p\u003e\n\n      \u003cfieldset class=\"coe-method\"\u003e\n        \u003clegend class=\"coe-method-legend\"\u003eDoes the company pay a regular dividend?\u003c\/legend\u003e\n        \u003cdiv class=\"coe-segmented\"\u003e\n          \u003cdiv class=\"coe-segmented-option\"\u003e\n            \u003cinput id=\"coe-method-dividend\" name=\"coe-method\" type=\"radio\" value=\"dividend\" checked\u003e\n            \u003clabel for=\"coe-method-dividend\"\u003eYes — use dividend growth\u003c\/label\u003e\n          \u003c\/div\u003e\n          \u003cdiv class=\"coe-segmented-option\"\u003e\n            \u003cinput id=\"coe-method-capm\" name=\"coe-method\" type=\"radio\" value=\"capm\"\u003e\n            \u003clabel for=\"coe-method-capm\"\u003eNo — use CAPM\u003c\/label\u003e\n          \u003c\/div\u003e\n        \u003c\/div\u003e\n      \u003c\/fieldset\u003e\n\n      \u003cdiv class=\"coe-fields coe-dividend-fields\"\u003e\n        \u003cdiv class=\"coe-field\"\u003e\n          \u003clabel class=\"coe-label\" for=\"coe-dividend\"\u003eDividend per share\u003c\/label\u003e\n          \u003cinput class=\"coe-control coe-money-input\" id=\"coe-dividend\" type=\"text\" inputmode=\"decimal\" value=\"$2.00\" aria-describedby=\"coe-dividend-help coe-dividend-error\"\u003e\n          \u003cp class=\"coe-helper\" id=\"coe-dividend-help\"\u003eExpected cash dividend per share over the next year.\u003c\/p\u003e\n          \u003cp class=\"coe-error\" id=\"coe-dividend-error\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"coe-field\"\u003e\n          \u003clabel class=\"coe-label\" for=\"coe-price\"\u003eCurrent share price\u003c\/label\u003e\n          \u003cinput class=\"coe-control coe-money-input\" id=\"coe-price\" type=\"text\" inputmode=\"decimal\" value=\"$70.00\" aria-describedby=\"coe-price-help coe-price-error\"\u003e\n          \u003cp class=\"coe-helper\" id=\"coe-price-help\"\u003eCurrent market price for one common share.\u003c\/p\u003e\n          \u003cp class=\"coe-error\" id=\"coe-price-error\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"coe-field coe-field-wide\"\u003e\n          \u003clabel class=\"coe-label\" for=\"coe-growth\"\u003eDividend growth rate\u003c\/label\u003e\n          \u003cinput class=\"coe-control coe-percent-input\" id=\"coe-growth\" type=\"text\" inputmode=\"decimal\" value=\"3.00%\" aria-describedby=\"coe-growth-help coe-growth-error\"\u003e\n          \u003cp class=\"coe-helper\" id=\"coe-growth-help\"\u003eExpected annual growth rate of dividends, entered as a percentage.\u003c\/p\u003e\n          \u003cp class=\"coe-error\" id=\"coe-growth-error\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n\n      \u003cdiv class=\"coe-fields coe-capm-fields\" hidden\u003e\n        \u003cdiv class=\"coe-field\"\u003e\n          \u003clabel class=\"coe-label\" for=\"coe-risk-free\"\u003eRisk-free rate\u003c\/label\u003e\n          \u003cinput class=\"coe-control coe-percent-input\" id=\"coe-risk-free\" type=\"text\" inputmode=\"decimal\" value=\"4.50%\" aria-describedby=\"coe-risk-free-help coe-risk-free-error\"\u003e\n          \u003cp class=\"coe-helper\" id=\"coe-risk-free-help\"\u003eYield on a maturity-matched government security.\u003c\/p\u003e\n          \u003cp class=\"coe-error\" id=\"coe-risk-free-error\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"coe-field\"\u003e\n          \u003clabel class=\"coe-label\" for=\"coe-beta\"\u003eEquity beta\u003c\/label\u003e\n          \u003cinput class=\"coe-control coe-number-input\" id=\"coe-beta\" type=\"text\" inputmode=\"decimal\" value=\"1.10\" aria-describedby=\"coe-beta-help coe-beta-error\"\u003e\n          \u003cp class=\"coe-helper\" id=\"coe-beta-help\"\u003eSensitivity of the stock to broad market movements.\u003c\/p\u003e\n          \u003cp class=\"coe-error\" id=\"coe-beta-error\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"coe-field coe-field-wide\"\u003e\n          \u003clabel class=\"coe-label\" for=\"coe-market-return\"\u003eExpected market return\u003c\/label\u003e\n          \u003cinput class=\"coe-control coe-percent-input\" id=\"coe-market-return\" type=\"text\" inputmode=\"decimal\" value=\"10.00%\" aria-describedby=\"coe-market-return-help coe-market-return-error\"\u003e\n          \u003cp class=\"coe-helper\" id=\"coe-market-return-help\"\u003eExpected annual return for the relevant equity market.\u003c\/p\u003e\n          \u003cp class=\"coe-error\" id=\"coe-market-return-error\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n    \u003c\/section\u003e\n\n    \u003csection class=\"coe-panel coe-result-panel\" aria-labelledby=\"coe-results-title\"\u003e\n      \u003cdiv\u003e\n        \u003ch3 class=\"coe-panel-title\" id=\"coe-results-title\"\u003eLive results\u003c\/h3\u003e\n        \u003cp class=\"coe-panel-intro\"\u003eThe estimate updates as you change an assumption.\u003c\/p\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"coe-primary-result\"\u003e\n        \u003cp class=\"coe-primary-label\"\u003eEstimated cost of equity\u003c\/p\u003e\n        \u003cp class=\"coe-primary-value\"\u003e5.86%\u003c\/p\u003e\n        \u003cp class=\"coe-primary-method\"\u003eDividend growth model\u003c\/p\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"coe-result-grid\"\u003e\n        \u003cdiv class=\"coe-result-card\"\u003e\n          \u003cp class=\"coe-result-card-label coe-component-one-label\"\u003eDividend yield\u003c\/p\u003e\n          \u003cp class=\"coe-result-card-value coe-component-one-value\"\u003e2.86%\u003c\/p\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"coe-result-card\"\u003e\n          \u003cp class=\"coe-result-card-label coe-component-two-label\"\u003eDividend growth\u003c\/p\u003e\n          \u003cp class=\"coe-result-card-value coe-component-two-value\"\u003e3.00%\u003c\/p\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"coe-result-card\"\u003e\n          \u003cp class=\"coe-result-card-label\"\u003eRequired return on $100\u003c\/p\u003e\n          \u003cp class=\"coe-result-card-value coe-return-value\"\u003e$5.86\u003c\/p\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cp class=\"coe-interpretation\"\u003eAt these assumptions, shareholders require an estimated annual return of 5.86%.\u003c\/p\u003e\n      \u003cp class=\"coe-formula\"\u003eCost of equity = dividend per share ÷ share price + dividend growth\u003c\/p\u003e\n      \u003cdiv class=\"coe-sr-only coe-live\" aria-live=\"polite\"\u003eEstimated cost of equity is 5.86% using the dividend growth model.\u003c\/div\u003e\n    \u003c\/section\u003e\n  \u003c\/div\u003e\n\n  \u003csection class=\"coe-section coe-chart-card\" aria-labelledby=\"coe-chart-title\"\u003e\n    \u003ch3 class=\"coe-section-title\" id=\"coe-chart-title\"\u003eReturn component breakdown\u003c\/h3\u003e\n    \u003cp class=\"coe-section-intro coe-chart-intro\"\u003eSee how each model component contributes to the selected estimate.\u003c\/p\u003e\n    \u003cdiv class=\"coe-chart-cluster\"\u003e\n      \u003cdiv class=\"coe-chart-visual\"\u003e\n        \u003csvg class=\"coe-chart-svg\" viewbox=\"0 0 560 260\" role=\"img\" aria-labelledby=\"coe-chart-svg-title coe-chart-svg-desc\"\u003e\n          \u003ctitle id=\"coe-chart-svg-title\"\u003eCost of equity component chart\u003c\/title\u003e\n          \u003cdesc id=\"coe-chart-svg-desc\"\u003eDividend yield is 2.86 percent and dividend growth is 3.00 percent.\u003c\/desc\u003e\n        \u003c\/svg\u003e\n        \u003cdiv class=\"coe-chart-empty\" hidden\u003eEnter values above to see the breakdown.\u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv\u003e\n        \u003cdiv class=\"coe-legend\" aria-label=\"Chart legend\"\u003e\u003c\/div\u003e\n        \u003cdiv class=\"coe-chart-caption\"\u003eThe dividend yield and expected growth rate contribute almost equally in this example.\u003c\/div\u003e\n      \u003c\/div\u003e\n    \u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003csection class=\"coe-section coe-table-card\" aria-labelledby=\"coe-table-title\"\u003e\n    \u003ch3 class=\"coe-section-title\" id=\"coe-table-title\"\u003eCalculation detail\u003c\/h3\u003e\n    \u003cp class=\"coe-section-intro\"\u003eExact values used by the results, chart, accessible summary, and Excel export.\u003c\/p\u003e\n    \u003cdiv class=\"coe-table-wrap\"\u003e\n      \u003ctable class=\"coe-table\"\u003e\n        \u003cthead\u003e\n          \u003ctr\u003e\n            \u003cth scope=\"col\"\u003eComponent\u003c\/th\u003e\n            \u003cth scope=\"col\"\u003eCalculation\u003c\/th\u003e\n            \u003cth class=\"coe-number\" scope=\"col\"\u003eRate\u003c\/th\u003e\n            \u003cth scope=\"col\"\u003eInterpretation\u003c\/th\u003e\n          \u003c\/tr\u003e\n        \u003c\/thead\u003e\n        \u003ctbody class=\"coe-table-body\"\u003e\u003c\/tbody\u003e\n      \u003c\/table\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"coe-table-note\"\u003eRates are annualized estimates. The model does not forecast realized stock returns and should be used with sensitivity analysis.\u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003carticle class=\"coe-education\"\u003e\n    \u003ch2\u003eWhat the cost of equity estimate means\u003c\/h2\u003e\n    \u003cp\u003eCost of equity is the annual return that common shareholders theoretically require for supplying capital to a company. From the company’s perspective, it is a hurdle rate: an equity-funded project should generally be expected to earn enough to compensate shareholders for the risk they bear. From an analyst’s perspective, it is often used as the discount rate for cash flows that belong only to equity holders. This calculator estimates that rate with one of two established approaches rather than predicting the actual return of a stock.\u003c\/p\u003e\n    \u003cp\u003eThe dividend-growth model is most suitable for a mature company that pays a regular dividend and has a reasonably stable long-term growth pattern. CAPM is broader and can be used for companies that do not pay dividends, but it depends on market-based assumptions that can change over time. Neither method removes judgment. A robust analysis usually tests a range of plausible inputs instead of treating one result as precise.\u003c\/p\u003e\n\n    \u003ch3\u003eHow to choose the model\u003c\/h3\u003e\n    \u003cp\u003eSelect \u003cstrong\u003eYes — use dividend growth\u003c\/strong\u003e when the company has an established dividend policy and the next annual dividend can be estimated credibly. The model adds the forward dividend yield to the expected perpetual growth rate. Select \u003cstrong\u003eNo — use CAPM\u003c\/strong\u003e when dividends are absent, irregular, or not representative of shareholder economics. CAPM adds a risk-free rate to a beta-adjusted market risk premium.\u003c\/p\u003e\n\n    \u003ch3\u003eDividend-growth inputs\u003c\/h3\u003e\n    \u003cul\u003e\n      \u003cli\u003e\n\u003cstrong\u003eDividend per share\u003c\/strong\u003e is the expected dividend over the next year, not necessarily the most recently paid dividend. Enter a nonnegative currency amount. A higher dividend increases the dividend yield and therefore increases the estimated cost of equity. Company annual reports, earnings releases, and filings available through the \u003ca href=\"https:\/\/www.sec.gov\/edgar\/search\/\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eSEC EDGAR database\u003c\/a\u003e can help confirm declared or expected dividends.\u003c\/li\u003e\n      \u003cli\u003e\n\u003cstrong\u003eCurrent share price\u003c\/strong\u003e is the market price for one common share. It is required and must be greater than zero because the dividend yield divides by price. Holding the dividend constant, a higher price reduces the yield and lowers the estimate. A common mistake is mixing an annual dividend with an outdated or differently adjusted share price.\u003c\/li\u003e\n      \u003cli\u003e\n\u003cstrong\u003eDividend growth rate\u003c\/strong\u003e is the expected long-run annual percentage change in dividends. Positive growth raises the cost-of-equity estimate; negative growth lowers it. The assumption should be sustainable rather than a short-term spike. Very high perpetual growth rates are usually inappropriate for mature businesses.\u003c\/li\u003e\n    \u003c\/ul\u003e\n\n    \u003ch3\u003eCAPM inputs\u003c\/h3\u003e\n    \u003cul\u003e\n      \u003cli\u003e\n\u003cstrong\u003eRisk-free rate\u003c\/strong\u003e represents the return available without taking equity-market risk. Analysts commonly use a government security whose currency and maturity align with the cash flows being valued. Current U.S. Treasury yield data are published by the \u003ca href=\"https:\/\/home.treasury.gov\/resource-center\/data-chart-center\/interest-rates\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eU.S. Department of the Treasury\u003c\/a\u003e. A higher risk-free rate increases cost of equity one-for-one.\u003c\/li\u003e\n      \u003cli\u003e\n\u003cstrong\u003eEquity beta\u003c\/strong\u003e measures how sensitive the stock is to broad market movements. A beta of 1.0 applies the full market risk premium; a beta above 1.0 amplifies it; a beta between 0 and 1 reduces it. Negative betas are mathematically possible but unusual. Use a beta consistent with the company’s leverage, peer set, observation period, and market index.\u003c\/li\u003e\n      \u003cli\u003e\n\u003cstrong\u003eExpected market return\u003c\/strong\u003e is the annual return expected from the relevant equity market. Subtracting the risk-free rate gives the market risk premium. The market return should be expressed in the same nominal or real terms, currency, and horizon as the risk-free rate. Historical and implied equity-risk-premium datasets from \u003ca href=\"https:\/\/pages.stern.nyu.edu\/~adamodar\/\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eNYU Stern’s valuation resources\u003c\/a\u003e can provide useful context.\u003c\/li\u003e\n    \u003c\/ul\u003e\n\n    \u003ch3\u003eHow the formulas work\u003c\/h3\u003e\n    \u003cp\u003eFor a dividend-paying company, the calculator uses \u003cstrong\u003ecost of equity = dividend per share ÷ current share price + dividend growth rate\u003c\/strong\u003e. The first term is the forward dividend yield, which represents cash income. The second term represents expected capital appreciation under the constant-growth assumption. For example, a $2 dividend, a $70 share price, and 3% growth produce a 2.86% dividend yield and a 5.86% cost of equity.\u003c\/p\u003e\n    \u003cp\u003eFor CAPM, the calculator uses \u003cstrong\u003ecost of equity = risk-free rate + beta × (expected market return − risk-free rate)\u003c\/strong\u003e. The difference between market return and risk-free rate is the market risk premium. Beta scales that premium to the company’s systematic risk. The general CAPM framework and its limitations are also summarized by \u003ca href=\"https:\/\/www.investopedia.com\/terms\/c\/capm.asp\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eInvestopedia’s CAPM overview\u003c\/a\u003e.\u003c\/p\u003e\n\n    \u003ch3\u003eReading the results, chart, and table\u003c\/h3\u003e\n    \u003cp\u003eThe primary result is the selected model’s annual cost of equity. A positive value indicates the modeled return shareholders require; zero means the entered components net to zero; a negative result can occur with negative growth, a negative market premium, or a negative beta and should prompt a careful review of assumptions. “Required return on $100” converts the percentage into a dollar amount for scale, not a promised payment.\u003c\/p\u003e\n    \u003cp\u003eThe component cards identify the two terms that sum to the total. In the dividend model, they are dividend yield and dividend growth. In CAPM, they are the risk-free rate and the beta-adjusted market premium. The bar chart plots the same current-state components and preserves negative values when they occur. The legend and calculation table use the identical model data, so their values reconcile directly to the headline result.\u003c\/p\u003e\n\n    \u003ch3\u003ePractical interpretation and common mistakes\u003c\/h3\u003e\n    \u003cp\u003eA higher cost of equity generally implies that investors perceive more risk or have better alternative opportunities. In valuation, a higher discount rate reduces the present value of future equity cash flows, while a lower rate increases it. Sensitivity matters: small changes in beta, the market risk premium, or perpetual dividend growth can materially affect conclusions.\u003c\/p\u003e\n    \u003cp\u003eCommon mistakes include using the last dividend instead of the next expected dividend, mixing monthly and annual figures, pairing a real risk-free rate with a nominal market return, using a stale beta, and assuming unusually high dividend growth continues forever. Reset clears the model to a neutral zero state so a new case can be entered without carrying over hidden assumptions. The downloadable workbook captures the current values, formulas, component breakdown, and explanatory notes for review; it is an analytical aid, not personalized investment advice.\u003c\/p\u003e\n  \u003c\/article\u003e\n\u003c\/div\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49909484617971,"sku":"cost-of-equity","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/cost-of-equity.webp?v=1783935448","url":"https:\/\/financialmodelslab.com\/products\/cost-of-equity","provider":"Financial Models Lab","version":"1.0","type":"link"}