Investopedia29d
How Do You Calculate Debt and Equity Ratios in the Cost of Capital?
The most common method used to calculate cost of equity is the capital asset pricing model or CAPM. Companies can use the weighted average cost of capital to determine the feasibility of starting ...
Harvard Business School3y
Financial Leverage, the Capital Asset Pricing Model and the Cost of Equity Capital
Mullins, David W., Jr. "Financial Leverage, the Capital Asset Pricing Model and the Cost of Equity Capital." Harvard Business School Background Note 280-100, March 1980. (Revised October 1980.) ...
Harvard Business School7y
The Capital Asset Pricing Model: Some Empirical Tests
Black, Fischer, Michael C. Jensen, and Myron Scholes. "The Capital Asset Pricing Model: Some Empirical Tests." In Studies in the Theory of Capital Markets, edited by ...
Investopedia8y
Unpacking the Smart Beta Strategy: What Investors Need to Know
It derives from the capital asset pricing model (CAPM) to define the relationship ... like momentum and growth that can help to better explain and predict the relationship between risk and ...
A new model enables investors to evaluate equity terms
For evaluating risky investments, understanding the term structure of discount rates is critical. Discount rates account for the riskiness of an investment, the time value of the money invested, and ...