Valutico

FEBRUARY 27, 2024

For central banks like the Federal Reserve, it helps control the economy. They set this rate to affect how much money moves through banks and influences short-term interest rates. We are going to focus on how discount rates are used in the context of investment, rather than in the context of central banks.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Weighted Average Cost of Capital 52

Andrew Stolz

MARCH 20, 2020

To calculate WACC, the cost of each capital component will be multiplied by its proportional weight. A firm borrows from banks or bondholders and it has to pay the interest. The formula implies the return an investor expects from a risk-free investment plus the return from the stock in relation to market volatility.

Beta 52

Beta Capital Structure Risk-free Rate Weighted Average Cost of Capital 52

Appraiser Newsroom

JULY 5, 2022

Dr. Henry has over 20 years of diverse experience in the fields of business economics, consulting/advisory services, interest rate and market risk modeling, and government affairs. He holds the Chartered Financial Analyst (CFA) designation, administered by the CFA Institute.

Business Valuation 40

Business Valuation Intangible Assets Appraisal Finance 40