Here Is How To Calculate Your Bank’s Cost Of Capital [Calculator]
South State Correspondent
NOVEMBER 15, 2022
While return on equity (ROE) is a good measure of bank performance, it is helpful for bank managers to know the spread between ROE and a bank’s cost of equity. The greater the spread, the greater the value creation and the more a bank is worth. You can reverse engineer it as the St. What It Means.
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