Valutico

FEBRUARY 27, 2024

More importantly, we’ll dig deeper into how discount rates can influence investment choices and how they’re used to figure out a company’s worth. What is a discount rate? The “discount rate” does two main things. For central banks like the Federal Reserve, it helps control the economy.

Discounted Cash Flow 52

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

Brian DeChesare

AUGUST 31, 2022

Traditionally, if someone asked the “ sales & trading vs. investment banking ” question, the response was easy: “Do banking unless you really, really like trading and could not imagine doing anything else.”. Convertibles do not create immediate dilution , unlike a traditional IPO or follow-on equity offering.

Banking 64

Banking Risk-free Rate Equity Start-ups 64

Andrew Stolz

MARCH 20, 2020

A firm uses a mix of equity and debt to minimize the cost of capital. In general, the cost of debt is lower than the cost of equity due to the tax advantage of debt. The cost of capital also reflects the riskiness of a firm which reflects the required rate of return. WACC is also viewed as appropriate for a discount rate.

Beta 52

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