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What is the Capital Asset Pricing Model (CAPM)?

Andrew Stolz

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. The Capital Asset Pricing Model in Practice.

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares).

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares).

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares).