# Posts Tagged ‘valuation’

## What Is Cost of Equity?

To compensate for the risks that shareholders take, firms pay them in return. The theoretical return the firm pays its shareholders is known as the cost of equity. In other words, the cost of equity is the rate of returns a firm pays to its shareholders.

Read Full Post## What Is Inflation?

Inflation is when the prices of goods and services increase over time. While the prices of goods and services increase, the purchasing power or value of money decreases.

Read Full Post## What Is Future Value?

Future value is the value of a current asset at a specific time in the future calculated based on an assumed growth rate.

Read Full Post## What is the Capital Asset Pricing Model (CAPM)?

CAPM is a measure used by investors to evaluate the expected return on investments. It allows investors to diversify their investments to achieve the desired return based on the risk of each investment.

Read Full Post## What Is Time Value of Money?

Time value of money describes how the sum of money that you hold currently is worth more than the equivalent sum in the future.

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