A company that earns a return on equity in excess of its cost of equity capital has added value. (For more on ROE, read Keep Your Eyes On The ROE .). Calculating the Cost of Equity The cost of equity can be a bit tricky to calculate as share capital carries no explicit cost. Unlike debt, which the company must pay in the form of predetermined interest, equity does not have a concrete price that the company must pay, but that doesn't mean no cost of equity exists.
Boltzmann's constant, also called the Boltzmann constant and symbolized k or k B, defines the relation between absolute temperature and the kinetic energy contained in each molecule of an ideal gas.he value of Boltzmann's constant is approximately 1.3807 x 10 -23 joule s per kelvin (J Â· K -1).
Boltzmann constant-A constant, k, involved in the equation for average velocity. k = 1.38Ã10-23 J/K. Diffusion-Diffusion is the spread of one substance through another. Effusion-Effusion is the rate at which a gas passes through a small hole into a vacuum. Kinetic energy-E k = 1/2mv 2. Kinetic molecular theory-A theory that models the interaction between individual gas molecules. See the summary for more details. Maxwell-Boltzmann speed distribution-The distibution attained when molecule speed is set against the number of molecules sharing that speed.