How to Calculate Cost of Retained Earnings?
Cost of Retained Earnings calculator uses Cost of Retained Earnings = (Dividend/Current Stock Price)+Growth Rate to calculate the Cost of Retained Earnings, The Cost of Retained Earnings formula is defined as an opportunity cost, representing the return shareholders could have earned if they had received the retained earnings as dividends and invested them elsewhere. Cost of Retained Earnings is denoted by C_{RE} symbol.
How to calculate Cost of Retained Earnings using this online calculator? To use this online calculator for Cost of Retained Earnings, enter Dividend (D), Current Stock Price (P_{c}) & Growth Rate (g) and hit the calculate button. Here is how the Cost of Retained Earnings calculation can be explained with given input values -> 0.698008 = (25/50)+0.2.