Business Valuation Risk-free Rate Specific Risk 
Andrew Stolz
AUGUST 5, 2020
It helps an investor understand what to expect to earn in relation to the risk-free rate and the market return. CAPM assumes that the minimum a rational investor would earn is the risk-free rate by buying the risk-free asset. How Do You Calculate the Capital Asset Pricing Model? E(r) = Rf + ??
Valutico
APRIL 17, 2023
WACCs in certain industries may be higher or lower in general, depending on the risk associated with that industry. A Short Summary The Weighted Average Cost of Capital (WACC) is an important tool for business valuation. Finally, tax rate (T) represents taxes associated with interest payments on debt or dividends on equity.
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Valutico
APRIL 17, 2023
WACCs in certain industries may be higher or lower in general, depending on the risk associated with that industry. A Short Summary The Weighted Average Cost of Capital (WACC) is an important tool for business valuation. Finally, tax rate (T) represents taxes associated with interest payments on debt or dividends on equity.
Valutico
APRIL 12, 2023
WACCs in certain industries may be higher or lower in general, depending on the risk associated with that industry. A Short Summary The Weighted Average Cost of Capital (WACC) is an important tool for business valuation. Finally, tax rate (T) represents taxes associated with interest payments on debt or dividends on equity.
Equidam
APRIL 22, 2025
10] , [23] , [2] Discount Rate: The rate used to discount future cash flows is typically the cost of equity, calculated via the Capital Asset Pricing Model (CAPM): Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium. [23] 23] Risk-Free Rate: Tied to government bond yields (e.g.,
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