Hi John, I'm really sorry for this silly question but I am really confused with the difference between wacc and capm. I have read your notes with the lectures but still can't get my head around what both show. Thank you
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Wacc and capm
7y ago#1WACC is the overall cost of capital and is used to discount the cash flows when appraising a project.
CAPM is used to calculate the cost of equity for the level of risk in the equity.
I really do suggest that you watch the lectures again (in the order of the chapters in the free lecture notes).
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