Two primary formulas are used to determine the discount rate: the weighted average cost of capital (WACC) and the adjusted present value (APV). The WACC discount formula is WACC = E/V × Ce × D ...

Bruner, Robert, Kenneth M. Eades, Robert S. Harris, and Robert F. Higgins. "Best Practices in Estimating the Cost of Capital: Survey and Synthesis." Financial Practice and Education 8, no. 1 ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. David Kindness is a Certified Public Accountant (CPA) and an expert in the ...

One common formula used to calculate the cost of equity is the capital asset pricing model (CAPM). The CAPM formula is: Cost of Equity = Risk-Free Rate + (Beta * Market Risk Premium) Several ...