China Yuexiu Expressway Closed Infrastructure Securities Investment Fund
SZSE:180202
Discount Rate
Cost of Equity
Discount Rate
What is China Yuexiu Expressway Closed Infrastructure Securities Investment Fund's discount rate?
We do not have the specific data for China Yuexiu Expressway Closed Infrastructure Securities Investment Fund's Cost of Equity.
In the valuation of banks and insurance companies, only the cost of equity is used due to their unique capital structures and regulatory environments.
These institutions heavily rely on debt, regulated more stringently than other industries, making the Weighted Average Cost of Capital (WACC) less applicable and accurate for them. The cost of equity offers a more direct measure of the risk and return expectations relevant to these specific sectors.
How is Cost of Equity for China Yuexiu Expressway Closed Infrastructure Securities Investment Fund calculated?
The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP).
This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk.
Here is how we calculate the cost of equity for China Yuexiu Expressway Closed Infrastructure Securities Investment Fund
