article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

The required rate of return for equity (Re) is generally calculated using the Capital Asset Pricing Model (CAPM). This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. Finally, tax rate (T) represents taxes associated with interest payments on debt or dividends on equity.

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

The required rate of return for equity (Re) is generally calculated using the Capital Asset Pricing Model (CAPM). This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. Finally, tax rate (T) represents taxes associated with interest payments on debt or dividends on equity.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

The required rate of return for equity (Re) is generally calculated using the Capital Asset Pricing Model (CAPM). This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. Finally, tax rate (T) represents taxes associated with interest payments on debt or dividends on equity.

article thumbnail

Oil & Gas Investment Banking: The First Victim of the ESG Cult?

Brian DeChesare

The entire Energy Services vertical is like a “high Beta” play on oil and gas prices. Oil & gas is very dependent on debt and equity financing, so the bulge brackets have a distinct advantage over smaller/independent firms here. This is why you repeatedly see firms like JPM, Citi, and Barclays in the deal lists above.

Banking 98