discount rate

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Capital Asset Pricing Model (CAPM)

See Also: Cost of Capital Cost of Capital Funding Arbitrage Pricing Theory APV Valuation Capital Budgeting Methods Discount Rates NPV Required Rate of Return Capital Asset Pricing Model (CAPM) The most popular method to calculate cost of equity is Capital Asset Pricing Model (CAPM). Why? Because it displays the relationship between risk and expected return

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Time Value of Money

See Also: Valuation Methods Adjusted Present Value (AVP) Net Present Value Method Internal Rate of Return Method Required Rate of Return Time Value of Money (TVM) Time value of money is the difference between an amount of money in the present and that same amount of money in the future. Having money now is more

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Internal Rate of Return Method

See also: Internal Rate Of Return Example NPV versus IRR Owner’s Equity Net Present Value (NPV) vs Payback Method Cost of Capital Valuation Methods Internal Rate of Return Method Definition The Internal Rate of Return method is the process of applying a discount rate that results in the present value of future net cash flows

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Discount Rate

See Also: EBITDA Definition Cost of Capital Funding Arbitrage Pricing Theory Capital Budgeting Methods Required Rate of Return Discount Rate Definition The discount rate definition, also known as hurdle rate, is a general term for any rate used in finding the present value of a future cash flow. In a discounted cash flow (DCF) model,

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Capitalization Rate Example

See Also: Capitalization Rate General Ledger Reconciliation and Analysis Valuation Methods Shareholders Equity Planning Your Exit Strategy Mergers and Acquisitions Capitalization Rate Example History John started a real estate company in Indiana. His company has recently begun operations and is beginning to make money. John now wants to strengthen his business; to do this requires

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