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).
By contrast, a molecule in a solid can only increase its vibration modes with the addition of heat as the lattice crystal structure prevents both linear and rotational motions. These heated gas molecules have a greater speed range which constantly varies due to constant collisions with other particles. The speed range can be described by the Maxwell-Boltzmann distribution. Use of this distribution implies ideal gases near thermodynamic equilibrium for the system of particles being considered.