Examlex
Match the term with its definition.
-Money loaned for a 5- to 10-year term, corresponding to the length of time the investment will bring in profits
Cost of Preferred
This refers to the required return on investment for preferred stock, representing the cost to a company for issuing such stock.
Pretax Cost of Debt
The interest rate a company pays on its debts, before taking taxes into account.
Cost of Equity
This refers to the rate of return that a company is expected to offer investors to compensate for the risk of investing in its equity.
Beta
A measure of a security's volatility in relation to the overall market.
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