By Dela Agbo  In the previous article titled “Equity vs. Debt: Understanding Two Key Investment Assets,” we explored the ...

A firm’s cost of equity represents the compensation that the market demands in exchange for owning the asset and bearing the risk of ownership ... For example, its cost of equity may be 8% ...

of which the debt-to-equity ratio is the predominant example. Accountants, economists, investors, lenders, and company executives use gearing ratios to measure the relationship between owners ...