Take a look at the primary differences between an investor's required rate of return and an issuing company's cost of capital ...

Businesses use their capital structure to finance operations and growth. Calculating WACC In essence, you first establish the cost of debt and the cost of equity. Then you multiply each of those ...

To account for companies with different debts and capital structures, it’s necessary to unlever the beta. That number is then used to find the cost of equity. To calculate the unlevered beta ...

If you fail to account properly for both sets of shares, you can end up paying more in capital gains taxes than necessary. The cost-basis calculation should be the same whether a person inherits ...

While calculating economic profit presents certain ... which companies are truly creating value in excess of their capital costs—the ultimate driver of long-term investment returns.