Reviewed by Thomas J. Catalano Fact checked by Ryan Eichler What Is the Capital Asset Pricing Model (CAPM)? Corporate accountants and financial analysts often use the capital asset pricing model (CAPM ...

The cost of equity is the rate of return required by the investor to justify the investment they are making.

The cost of equity and the cost of capital are key metrics in corporate finance that influence financial strategy and investment decisions. The cost of equity reflects the return shareholders ...

The cost of capital is a measurement of the cost of raising additional capital through borrowing or issuing equity. It’s used to determine whether a certain investment or project has merit.