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Data Update 4 for 2022: Risk = Danger + Opportunity!

Musings on Markets

Risk and Hurdle Rates In investing and corporate finance, we have no choice but to come up with measures of risk, flawed though they might be, that can be converted into numbers that drive decisions. In corporate finance, this takes the form of a hurdle rate , a minimum acceptable return on an investment, for it to be funded.

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. A beta of 1.0

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. A beta of 1.0

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. A beta of 1.0

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Marking Time: A new year, a fresh semester and its class time!

Musings on Markets

Corporate Finance : Corporate finance is the development of the first financial principles that govern how to run a business. It is that mission that makes corporate finance the ultimate big picture class, one that everyone (entrepreneurs, investors, analysts, business observers) should take.

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Data Update 1 for 2024: The data speaks, but what does it say?

Musings on Markets

In my corporate finance class, I describe all decisions that companies make as falling into one of three buckets – investing decisions, financing decision and dividend decisions. Beta & Risk 1. Financing Flows 5. Return on Equity 1. Debt Ratios & Fundamentals 1. Debt Details 1. Buybacks 2. Tax rates 4.

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Data Update 5 for 2024: Profitability - The End Game for Business?

Musings on Markets

In fact, that objective of value maximization drives every aspect of the business, as can be seen in this big picture perspective in corporate finance: For some companies, especially mature ones, value and profit maximization may converge, but for most, they will not.

Equity 80