Talk:Cost of equity
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The cost of equity formula shown in the page is misleading since a company that is not paying any dividends is not facing zero cost of equity. Thus, it should be removed because it can easily be falsely interpreted and taken for granted.
I believe that "dividends" are too narrow and should be replaced with "return," which captures all increases in equity , whether dividends or accruals.afuturehead 05:20, 8 April 2007 (UTC)
Maybe instead of removing it, this limitation of the model should be explained.
Maybe this article can be rewritten to illustrate both the constant dividend growth model as well as the CAPM method. I'd do it myself, but I am busy studying right now. Mattlach (talk) 01:22, 19 November 2007 (UTC)