There is a lot of terminology confusion between risk-premium, discount rate, weighted average cost of capital (WACC) and capital asset pricing models (CAPM). In addition, the amount of work ...

The cost of capital and the discount rate are two related terms that are sometimes confused with each other. But they have important distinctions that make them both useful in deciding whether a ...

Christina Majaski writes and edits finance, credit cards, and travel content. She has 14+ years of experience with print and digital publications. Vikki Velasquez is a researcher and writer who ...

The WACC is used as a discount rate to determine the present value of future cash flows in discounted cash flow analysis. In general, a company’s WACC is typically considered to be the minimum ...