Weighted Average Cost of Capital Explained – Formula and Meaning
Valutico
APRIL 17, 2023
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.
Let's personalize your content