EQUITY RISK PREMIUM Definition

Bookmark and Share

EQUITY RISK PREMIUM is a rate of return in addition to a risk-free rate to compensate for investing in equity instruments because they have a higher degree of probable risk than risk-free instruments (a component of the cost of equity capital or equity discount rate).

Learn new Accounting Terms

LOC see Letter of Credit.

CONDITIONAL SALES CONTRACT is a credit contract used for the purchase of equipment where the purchaser doesnt receive title of the equipment until the amount specified in the contract has been paid in full.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.