Finance
Define Cost of Capital
Cost of Capital introduces to the opportunity cost of making a particular investment. It is the rate of return that could have been gained by putting the same…
Concept of Cost of Capital
Finance
What are the components of CAPM equation?
The capital asset pricing model (CAPM) provides a formula that calculates the expected return on a security based on its level of risk. The formula…
Finance
Explain Dividend Growth Model
Equity valuation is a subject of great depth and complexity. Valuation entails understanding a business; forecasting its performance, selecting the appropriate valuation model; converting such…
Finance
Define Weighted Average Cost Of Capital (WACC)
Weighted Average Cost Of Capital (WACC) refers to the cost of capital which is calculated by multiplying the cost of specific sources and the weight…