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  2. Capital asset pricing model - Wikipedia

    en.wikipedia.org/wiki/Capital_asset_pricing_model

    An estimation of the CAPM and the security market line (purple) for the Dow Jones Industrial Average over 3 years for monthly data. In finance, the capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified portfolio.

  3. Weighted average cost of capital - Wikipedia

    en.wikipedia.org/wiki/Weighted_average_cost_of...

    The WACC is commonly referred to as the firm's cost of capital. Importantly, it is dictated by the external market and not by management. The WACC represents the minimum return that a company must earn on an existing asset base to satisfy its creditors, owners, and other providers of capital, or they will invest elsewhere. [1]

  4. Roll's critique - Wikipedia

    en.wikipedia.org/wiki/Roll's_critique

    Roll's critique is a famous analysis of the validity of empirical tests of the capital asset pricing model (CAPM) by Richard Roll. It concerns methods to formally test the statement of the CAPM, the equation = + [()].

  5. What is the Capital Asset Pricing Model (CAPM)? - AOL

    www.aol.com/finance/capital-asset-pricing-model...

    CAPM assumes that investors are looking to maximize their return and that they can evaluate expected return and risk. It also assumes that investors have access to risk-free borrowing and lending.

  6. Cost of capital - Wikipedia

    en.wikipedia.org/wiki/Cost_of_capital

    The weighted cost of capital (WACC) is used in finance to measure a firm's cost of capital. WACC is not dictated by management. Rather, it represents the minimum return that a company must earn on an existing asset base to satisfy its creditors, owners, and other providers of capital, or they will invest elsewhere. [4]

  7. Valuation using discounted cash flows - Wikipedia

    en.wikipedia.org/wiki/Valuation_using_discounted...

    WACC is the weighted average cost of capital, combining the cost of equity and the after-tax cost of debt; t is the time period; n is the number of time periods to "maturity" or exit; g is the sustainable growth rate at that point

  8. Today's Wordle Hint, Answer for #1255 on Monday, November 25 ...

    www.aol.com/lifestyle/todays-wordle-hint-answer...

    If you’re stuck on today’s Wordle answer, we’re here to help—but beware of spoilers for Wordle 1255 ahead. Let's start with a few hints.

  9. Economic value added - Wikipedia

    en.wikipedia.org/wiki/Economic_Value_Added

    c = cost of capital, or the weighted average cost of capital (WACC). NOPAT is profits derived from a company's operations after cash taxes but before financing costs and non-cash bookkeeping entries. It is the total pool of profits available to provide a cash return to those who provide capital to the firm.