There is a lot of terminology confusion between risk-premium, discount rate, weighted average cost of capital (WACC) and capital asset pricing models (CAPM). In addition, the amount of work ...

Learn about our editorial policies The required rate of return (RRR) and the cost of capital are key fundamental metrics in finance and investing. These measures—which vary in scope, perspective ...

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 ...

The NPV, IRR, and discount rate are connected concepts. You know the amounts and timings of cash flows with an NPV. You also know the weighted average cost of capital (WACC), which is designated ...

Weighted average cost of capital (WACC) is a key metric that ... More specifically, this approach uses something called the discount rate, the interest rate used to calculate an investment's ...

The two main formulas for determining the cost of equity are the capital asset pricing model (CAPM) and dividend discount model ... Risk-Free Rate of Return + Beta × (Market Rate of Return ...