Interest Rates

Has Calculator

What it means

The price of borrowing money — set by central banks and adjusted by credit spreads.

Why it matters

Every WACC input, refinancing decision, and consumer demand signal moves with rates.

How to calculate — with Cawan's Shoes

Nominal = Real + Inflation + Risk Premium. When Fed hikes 1%, Cawan's floating debt adds ~$4M interest on $400M.

What's at stake if you ignore this

Ignoring rate exposure destroyed many highly-levered retailers in tightening cycles.