Cost of Equity is the rate of return a shareholder requires for investing in a business. The rate of return required is based on the level of risk associated with the investment| Corporate Finance Institute
Capital structure refers to the amount of debt and/or equity employed by a firm to fund its operations and finance its assets. A firm's capital structure| Corporate Finance Institute
Opportunity cost is one of the key concepts in the study of economics and is prevalent throughout various decision-making processes. The| Corporate Finance Institute
Equity value can be defined as the total value of the company that is attributable to shareholders. To calculate equity value, follow this guide from CFI.| Corporate Finance Institute
A solid understanding of statistics is crucially important in helping us better understand finance. Moreover, statistics concepts can help investors monitor| Corporate Finance Institute
Calculate the Internal Rate of Return (IRR) using our free calculator. Understand IRR with our definition and formula to assess investment profitability.| Corporate Finance Institute
Return on Invested Capital (ROIC) is a profitability or performance measure of the return earned by those who provide capital, i.e., bondholders and stockholders.| Corporate Finance Institute
The risk-free rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk.| Corporate Finance Institute
The cost of debt is the return that a company provides to its debtholders and creditors. Cost of debt is used in WACC calculations for valuation analysis.| Corporate Finance Institute
The 10-year US Treasury Note is a debt obligation that is issued by the US Treasury Department and comes with a maturity of 10 years.| Corporate Finance Institute
Unlevered Beta (Asset Beta) is the volatility of returns for a business, without considering its financial leverage. It only takes into account its assets.| Corporate Finance Institute
The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between expected return and risk of a security.| Corporate Finance Institute
Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present.| Corporate Finance Institute
A hurdle rate, or minimum acceptable rate of return (MARR), is the minimum required rate of return or target rate that investors expect to receive on an investment.| Corporate Finance Institute
The XNPV function in Excel should be used over the regular NPV function in financial modeling and valuation analysis to ensure precision and accuracy.| Corporate Finance Institute
