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Remove Capital Structure Remove Debt Financing Remove Net Present Value Related Topics
Weighted Average Cost of Capital Market Risk Equity Financing Risk-free Rate Specific Risk Risk Premium Beta Discounted Cash Flow Equity Marketability More Related Topics >
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Discount Rate—Explanation, Definition and Examples

Valutico

FEBRUARY 27, 2024

Weighted Average Cost of Capital (WACC): WACC is the average rate of return a company is expected to provide to all its investors, including equity and debt holders. It is calculated by weighting the cost of equity and cost of debt based on their proportions in the capital structure.

Discounted Cash Flow 52
Discounted Cash Flow Risk Premium Risk-free Rate Weighted Average Cost of Capital 52
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Modeling Managers as EPS Maximizers

Reynolds Holding

APRIL 25, 2023

In business schools, managers are taught to maximize the net present value (NPV) of future cash flows. We can broadly classify firms’ corporate behaviors into two categories: growth and value firms. In the real world, managers consistently ignore this advice.

Net Present Value 59
Net Present Value Corporate Finance Finance Equity 59
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