The cost of equity represents the rate of return required by shareholders and is paid by the company.

Investment in the company. If the rate of return is lower than the opportunity cost, then

Business value decreases, if the rate of return is higher than the opportunity cost, then

Commercial value increased. Shareholders' expected rate of return is based on opportunity cost.

On investors' expected return on the same risk. In the absence of resale transactions

Existing shares, shareholders will only receive dividends. If the future dividend flow is known,

The discount rate equal to the present value of dividends multiplied by the current price change will be

The rate of return required by investors. The difficulty of this model lies in determining the exact level.

Future dividends. Therefore, the research in this field tries to find a method to estimate this mortality rate.

The most important returns expected by investors are shown in the following table.

2.3. 1 equity cost method

The cost of equity represents the rate of return required by shareholders, and the company pays them.

Investment companies, if the rate of return is lower than the opportunity cost, then

If the business value decreases, if the rate of return is higher than the opportunity cost, it will be higher by the superior.

Commercial value increased. The expected rate of return of shareholders is the basis of opportunity cost.

Investments with investors' expected returns have the same risks in non-resale transactions.

Shareholders will receive the only dividend on their existing shares. If the future cash flow of dividends is known,

The discount rate is equal to the current price trend, and the present value of dividends will be

The difficulty of this model lies in determining the exact level of return required by investors.

Future dividends. Therefore, this research tries to find a way to estimate this ratio.

Returning to the expected investors, the following table gives the most important investors: