wacc - capm, page-15

  1. 14,091 Posts.
    lightbulb Created with Sketch. 82
    lol..thanx

    so
    wacc=the discount rate

    ok...
    so lets say wanted to get $100 interest in the bank and the interest rate was 5%
    you would have to have $2000 in the accout

    100/.05=2000
    as an investor your expected return is 5% or $100 on $2000

    or another way
    a company has eps of $100
    the wacc for the company is 5%
    the company is worth = $2000

    would you say then that 5% is the discount rate

    or would you call it my "expected return"

    if so then wacc of capital = investor's expected return

 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.