Capital Asset Pricing Model (CAPM) describes rsik free rate of return and risk premium. But in IFM, there is no risk free rate of return. So, CAPM under IFM will be different than the traditional CAPM. what do you think??
Again , in the WACC there will not be the interest under IFM. SO, WACC under IFM equals to cost of equity only. What do you think??
CAPM -Capital Asset Pricing Model(Ke)
WACC-Weighted Average Cost of Capital (Ko)
It would be relatively easy to determine a company's cost of capital if it only received funding from one source, such common stock. The firm's cost of capital would be equal to its cost of equity, or 10%, if investors were anticipating a rate of return of 10% on their investment in shares.
We can offset the interest rate that represents the risk-free return using the inflation rate.
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