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 ...

Retained earnings ... stockholders' equity account, that is to say it is deducted from stockholders' equity. Treasury stock is most often carried on the balance sheet at cost.

The ratio can be distorted by retained earnings or losses ... and shareholders’ equity in adjacent spreadsheet cells such as in B2 and B3 and then add the formula “=B2/B3” in cell B4 ...

Retained earnings add to shareholder equity (how much each share of a stock is worth in real terms—not market value), which can, in turn, drive stock price up. For this reason, high retained ...