growth in dividends to calculate the current cost of equity capital for a company 13.9 Your manager just finished calculating your company's weighted average cost of capital. He is relieved because he says that he can now use that cost of capital to evaluate all projects that the company is considering for the next 4 years. Evaluate that statement 13.34 The cost of equity is equal to the: a expected market returrn b rate of return required by shareholders e cost of retained earnings plus dividends. d risk the company incurs when financing