Andrew Stolz

AUGUST 5, 2020

If an investor moves money from the risk-free asset into the stock market, they should expect to earn a return in excess of the risk-free rate, what is called an equity risk premium. Investments are exposed to two types of risk: systematic and unsystematic. E(r) = Rf + ??(Rm

Risk-free Rate 52

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

Equidam

APRIL 22, 2025

It determines the price per share, dictating how much equity founders concede in exchange for the capital raised. [3] 3] , [7] , [6] It sets a benchmark against which future fundraising rounds will be measured and helps investors assess whether the potential upside justifies the significant risks associated with early-stage ventures. [8]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64

Reynolds Holding

FEBRUARY 23, 2025

Strong empirical evidence shows the United States has a lower cost of equity capital than comparable countries and that this lower cost is attributable in part to an institutional design that protects the independence of securities regulators and assures strong enforcement. In the United States, the cost of capital is lower than elsewhere.

Systematic Risk 45

Systematic Risk Marketability Equity Risk Premium 45