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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Discount rate and cost if capital.
Hello tutor,
Could you kindly tell the difference between discount rate and cost of capital, please?
Thank you.
The rate at which an investment is discounted depends on the cost of the capital used to finance the investment and on the riskiness (as measured by the beta) of the investment.
This is all explained in my free lectures which are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
