The cost of equity is the income that a company requires for an investment or project, or the income that an individual requires for an equity investment.
The formula used to calculate the cost of equity is either a dividend capitalization model or a CAPM model.
The disadvantage of the dividend capitalization model, despite its simplicity and ease of calculation, is that it requires the company to pay dividends.
The cost of capital, usually calculated using the weighted average cost of capital, includes both the cost of equity and the cost of debt.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.