Yield on cost is a handy metric for income-seeking investors to learn. It measures the income yield an investor is earning on ...
The DDM formula is: Cost of Equity (DDM) = (Dividends per Share / Current Stock Price ... The cost of equity also plays a role in the weighted average cost of capital (WACC).
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. The traditional formula for the cost of equity is ...
Over time, the strategy should lower your average cost per share, if purchases correspond to market cycles.