WACC, CAPM, dividend models, and bond valuation — every formula worked with real numbers.
Bond valuation prices a bond as the present value of its coupons plus face value, discounted at the market rate. Formula, full semiannual example, common mistakes.
The yield to maturity formula has no direct solution. See the exact equation, the approximation shortcut, and a worked discount bond comparing both answers.
The CAPM formula computes expected return: risk-free rate plus beta times the market risk premium. See what beta measures, with worked examples at three betas.
The cost of equity formula both ways: CAPM (risk-free rate plus beta times the market risk premium) and dividend capitalization, worked through one company.
The dividend discount model values a stock as the present value of all its future dividends. See the three versions and a complete two-stage worked example.
The Gordon growth model values a stock as next year's dividend divided by required return minus growth. Worked example, input traps, and the cases where the model fails.
The terminal value formula both ways — perpetuity growth and exit multiple — plus how to discount terminal value back to today in a DCF, with a worked mini-DCF.
The WACC formula blends a company's cost of equity and after-tax cost of debt, weighted by market value. Every input explained, with a full worked calculation.