One common formula used to calculate the cost of equity is the capital asset pricing model (CAPM). The CAPM formula is: Cost of Equity = Risk-Free Rate + (Beta * Market Risk Premium) Several ...

The traditional formula for the cost of equity is the dividend capitalization model and the capital asset pricing model (CAPM). The cost of equity is the return that a company requires for an ...

"The formula uses the cost of each of the sources of capital and weighs them relevant to the market value of the business," says Daniel Milan, an investment advisor at Cornerstone Financial Services.

Nick David / Getty Images There is no specific formula in Excel or other spreadsheet applications that will calculate a company's weighted average cost of capital (WACC) for you. Instead ...