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

Valutico

FEBRUARY 27, 2024

Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis. The Discounted Cash Flow (DCF) method uses the discount rate to consider all future cash flows of a business when calculating its current value.

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. Growth firms will issue equity to pay for acquisitions; value firms won’t.

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