Month: April 2025

CAPM’s Core: Three Components for Cost of Equity Estimation CAPM: Calculating the Cost of Equity Capital Cost of Equity: Why Shareholders Expect a Return Decoding Required Return: Hurdle Rate, Cost of Capital, Discount Rate Investment Returns: Why Projects Need to Match Market Risk Discount Rate and Financial Asset Returns: The Fundamental Connection Cost of Capital: Understanding Opportunity Cost for Investors Calculating Asset Beta: The Unlevering of Equity Beta Financial Leverage: Impact on Equity Beta vs Asset Beta Challenges Estimating Cost of Capital for New Business Lines