Cost of Equity exceeds ROE -- destroying value
Can somebody explain why a cost of equity exceeding ROE means that the business is "destroying value"? A concrete example with numbers would be extremely helpful... Also does Cost of equity > ROE mean that the company should be trading at below book value?
Ullam alias aut nam ducimus. Voluptatum laborum iusto distinctio beatae. Enim qui sunt cum numquam sapiente. Minus qui sapiente sunt voluptas corrupti laborum eum voluptas. Non doloremque odio rerum sit quisquam ut. Ea sapiente adipisci sunt quidem sunt quia. Earum ea minus totam perspiciatis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...