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      "text": "Conceptually, the discount rate measures risk. The greater the risk, the higher the discount rate. The less the risk, the lower the discount rate.",
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      "text": "228. How do you calculate Cost of Equity (CoE)? Using the Capital Asset Pricing Model, Cost of Equity equals Risk Free Rate plus the product of Beta and Equity Risk Premium.",
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      "text": "226. What does the discount rate represent conceptually? Conceptually, the discount rate measures risk. The greater the risk, the higher the discount rate. The less the risk, the lower the discount rate.",
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      "text": "227. How do you calculate Weighted Average Cost of Capital (WACC)? First, we take the Cost of Equity and multiply it by the percentage of equity in the capital structure. Then we take the After-Tax Cost of Debt and multiply it by the percentage of debt in the capital structure. We add the two up and that gives us WACC.",
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      "text": "229. How do you calculate Cost of Debt (CoD)? This is usually a number we need to get from the Debt Capital Markets team. It's technically the yield on incremental long-term debt that the company issues.",
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      "text": "IV. Discounted Cash Flow (DCF) D. Discount Rate",
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