The cost of equity formula is a financial metric that represents the return investors expect for holding a company's stock.

Rates down, assets up—let the good times roll! It will be fun for a while. Until prices skyrocket again. This should concern dividend investors.

The formula for P/E ratio is as follows ... we can calculate the P/E ratios for each company’s stock. For this we use the share price and the EPS: Share price: Company X is trading for $80 ...