When evaluating the attractiveness of investment in a specific equity, the investor is likely to use a number of financial models for this purpose, among which the most prominent are WACC and CAPM.
The aim of the current paper is to examine the models that
investors might use to access the potential value and return
on their investment. In this context, the most commonly used
model is the WACC. The paper will also consider the impact
that interest rates have on investor decision-making and an
assessment of the return on bonds