UK Is it possible to reflect the cost of equity in net income?

[erickwy]

When I raise equity through external financing, I suppose the cost also incurs estimated by the cost of equity and the equity raised. If so, I know this can be reflected in EVA (Economic Value Added). However, how can I reflect this when I report the Net Income? Is this ever reflected in Net Income?

Many thanks in advance.

 

[Werner Reisacher]

When you raise financing from external sources, you will pay interest. This is an expense and by booking it, it will have a negative impact on your net worth when you close out the books.