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of Key Terms 1 of 4 Glossary of Key Terms Introduction to Business Valuation Term Definition 52 Week High/Low The highest and lowest prices of a stock in the past 52 weeks, used as a benchmark in valuation. Asset Approach Valuation approach based on the fair market value of a company's net assets. Beta A measure of a stock's volatility relative to the market. Capital Asset Pricing Model (CAPM) A model that calculates the expected return of an asset based on its risk. Cash and Cash Equivalents Highly liquid assets that can be quickly converted to cash. Control Premium An additional price paid during an acquisition to reflect strategic advantages gained by the buyer. Cost of Capital The rate of return required by investors to finance a business or investment. Debt Financing Raising capital for a business by borrowing funds, typically through loans or bonds. Discount Rate The rate used to discount future cash flows to the present value. Discounted Cash Flows (DCF) A valuation method that forecasts future cash flows and discounts them to the present value. EBITDA Earnings before interest, taxes, depreciation, and amortization, used to measure a company's financial performance. Earnings...