Valuation & Deals · Intrinsic value
Cost of capital & WACC
What return do investors demand to fund a company? CAPM for the cost of equity, after-tax cost of debt, and blending them into WACC: the discount rate for a DCF.
Step 1 of 7 · Overview30 min read ·
Key idea
Prereqs: Time value of money. Next: Discounted cash flow. Damodaran *Investment Valuation* ch. 7–8; Berk & DeMarzo ch. 12.Next: 1. The idea