Equity


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Equity
EquityEquity is the capital that is injected in the firm by the owners or its stakeholders. It represents capital that is fully at risk: if the firm defaults, the money is lost. Whoever provides capital to someone else, wants something back: thus equity comes at a cost ke, the cost of equity, which is a percentage with values typically over 10% per annum (see Chap. 6).When the owners inject capital in the firm, they get a title of ownership that depends on the percentage of their injected capital over the total equity of the firm. As a title of ownership, shares are attributed to the e…
Citation
Gabriele Zini: Green Electrical Energy Storage: Science and Finance for Total Fossil Fuel Substitution. Equity, Chapter (McGraw-Hill Professional, 2016), AccessEngineering Export