Examlex
A plane is moving due north, directly towards its destination. Its airspeed is 200 mph. A constant breeze is blowing from west to east at 42 mph. In which direction is the plane pointed?
WACC
The weighted average cost of capital, a measure of a firm's cost of capital in which each category of capital is proportionately weighted.
Firm Value
The total value of a company, measured by its market capitalization plus debts, minority interest, and preferred shares, minus total cash and cash equivalents.
Cost of Equity
The return a company theoretically pays to its equity investors to compensate them for the risk they undertake by investing in the stock.
WACC
Weighted Average Cost of Capital. It represents the average rate that a company is expected to pay to finance its assets, weighted according to the proportion of equity and debt in its capital structure.
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