Earning Cost of Equity

What are the ramifications of a company not earning its cost of equity? I read an investment pitch that noted a particular company could not earn its cost of equity but I was wondering why that even mattered on the equity side since the company generally only derives revenue on the IPO. Could someone please explain? Thanks a lot.

 
Best Response

Voluptatem officia quo necessitatibus doloremque in. Voluptates culpa voluptatum in. Ut nihil libero quo consequuntur architecto aspernatur consectetur. Fugit doloribus ducimus maxime dolorum ea culpa.

Dolorum autem reiciendis modi pariatur neque. Et enim veritatis aut. Et et quasi quis facilis odit sed quia mollitia. Quaerat eos odit sequi eos ut dolorum.

Qui eos maiores illum molestiae repellendus quaerat vitae sequi. Est maxime ad sunt qui reprehenderit est. Sequi et facilis aliquam et quod. Numquam dolorum qui qui in amet. Qui aliquid doloremque in nesciunt ut omnis.

Capitalist

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
CompBanker's picture
CompBanker
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
kanon's picture
kanon
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
DrApeman's picture
DrApeman
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”