Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Yarilet Perez is an experienced multimedia journalist and fact-checker with ...

In the final part of Jean-Louis Roux Dit Buisson’s trilogy, he discusses how pharma companies can estimate their discount rates, looking at risk premiums. There is a lot of terminology confusion ...

The goal of the project is to construct a large-scale database on the cost of capital and hurdle rates used by managers. The cost of capital, and corporate discount rates more generally, are some of ...

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The discount rate refers to the interest rate used when calculating the net present value (NPV) of an investment. It represents the time value of money, which is the concept that a sum of money ...

The two main formulas for determining the cost of equity are the capital asset pricing model (CAPM) and dividend discount model (DDM).