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Which is the most important factor contributing to EI?
M&M Proposition II
A theory in corporate finance that asserts the cost of equity is a linear function of the company's debt/equity ratio, under the assumption of no taxes and financial distress costs.
Cost of Equity Capital
The return required by equity investors as compensation for their investment risk.
WACC
Weighted Average Cost of Capital, a measure of the average rate of return a company is expected to pay its securities holders to finance its assets.
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