Explain how the risk-free rate, market risk premium and stock beta are used to calculate expected re
Explain how the risk-free rate, market risk premium and stock beta are used to calculate expected returns using the capital asset pricing model (CAPM).
Explain how cyclicality of revenues and operating leverage help determine beta.
Describe the dividend discount model (DDM) approach and how is it different than CAPM.
Understand how to calculate the weighted average cost of capital to determine the optimum level of debt and equity to finance an investment.