Meaning and formula of WACC
WACC – Weighted Average cost of capital - (E/E+D)*Ke + [D(1-t)/E+D]*Kd E – Market Value of Equity D – Market Value of Debt Ke – Cost of equity Kd –…
What is systematic risk and unsystematic risk?
Unsystematic risk, also known as "specific risk," "diversifiable risk" or "residual risk," is the type of uncertainty that comes with the company or industry you invest in. Unsystematic risk can…
What is risk free rate?
In theory, the risk-free rate is the minimum return an investor expects for any investment because he or she will not accept additional risk unless the potential rate of return…