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


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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.
 
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Werner Reisacher

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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.
 

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