The cost of equity capital is directly brought by the formula of capm model, RS=RF+β(RM-RF). Not all questions give the interest rate and risk premium of the national debt, including the β coefficient you calculated at the beginning. Does the spread of 1% reduce the cost of debt funds? Remember that the cost of debt capital should be converted into the cost of debt capital after tax. At the same time, the capital cost of selling an enterprise's rights and interests has also changed, and finally the final average capital cost is calculated with the new weighted average.

1, the leverage-free beta coefficient refers to the beta coefficient excluding financial leverage, so as to calculate the part intentionally excluded by relevant enterprises without financial risks. Enterprises without financial leverage have only operational risks and no financial risks. The beta coefficient without financial leverage is an index to measure the business risk of enterprises. The greater the beta coefficient, the greater the business risk of the enterprise, the greater the investment return required by investors and the lower the P/E ratio. Therefore, the relationship between P/E ratio and beta coefficient is reversed without financial leverage.

2.β coefficient is a tool to evaluate the systemic risk of securities, which is used to measure the volatility of a securities or portfolio relative to the overall market. Common investment terms such as stocks and funds.

Extended data:

3. Leverage reflects the cost ratio of investment stocks to investment warrants. Assuming that the leverage ratio is 10 times, it can only show that the cost of investment warrants is one tenth of that of investment stocks, but it cannot show that when stocks rise 1%, the warrant price will rise 10%. After obtaining the operating leverage coefficient, assuming that the fixed cost remains unchanged, the operating profit in the planned period can be predicted by the following formula: operating profit in the planned period = operating profit in the base period ×( 1+ production and marketing change rate × operating leverage coefficient). Under the action of a certain fixed cost ratio, the influence of sales volume changes on profits can be predicted. Because operating leverage has the most comprehensive impact on business risk, it is often used to measure the size of business risk. The size of operating leverage is generally expressed by operating leverage coefficient, that is, the ratio of EBIT change rate to sales change rate.

4. Beta coefficient is one of the important reference indexes to measure the structural and systemic risks in the stock market fluctuation risk and investment opportunity evaluation method, and its true meaning is the deviation degree of individual assets and their combinations (stock fluctuation) from the overall assets (market fluctuation). The opposite of systematic risk is individual risk, that is, the price fluctuation caused by the company's own factors. Total risk = system risk+personal risk

5. Beta reflects the sensitivity of the price of a specific asset to the overall economic fluctuation, that is, the value of the market portfolio changes by 65,438+0 percentage points, and the value of the asset changes by several percentage points-or in more popular terms, the market rises by 65,438+0 percentage points and the stock price changes by several percentage points. Formulated: In practice, the historical rate of return of a single stock asset is generally used to return the index (market) rate of return in the same period, and the regression coefficient is beta coefficient.