Cost of capital: related pages

NPV (net present value)
The current value of a stream of future cash flows, negative or positive.
IRR
The discount rate at which the net present value is zero.
Dividend discount model
A financial model that values shares at the discounted value of future dividend payments. This is theoretically the most correct way of valuing shares.
Risk premium
The difference between the rate of return on a security (or a market or an investment) and the risk free rate of return.
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