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

Valutico

FEBRUARY 27, 2024

In DCF analysis, the Weighted Average Cost of Capital (WACC), representing the average return required by all stakeholders, is commonly used as the discount rate. The discount rate must be carefully chosen to reflect unique company risks and characteristics, and also changes in economic conditions.

Discounted Cash Flow 52
Discounted Cash Flow Risk Premium Risk-free Rate Weighted Average Cost of Capital 52
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What is the Capital Asset Pricing Model (CAPM)?

Andrew Stolz

AUGUST 5, 2020

Investments are exposed to two types of risk: systematic and unsystematic. Systematic risks are uncontrollable market risks due to unavoidable external factors. Systematic risks include interest rates, economic fluctuations, political unrest, pandemics, etc. How Do You Calculate the Capital Asset Pricing Model?

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