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How did the Fed encourage business confidence after the September 11 terrorist attacks?
Cost of Equity
The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate them for the risk of investing in the company.
Pre-tax Cost
The cost of an investment or expense before the application of taxes, representing the gross expense.
Market Price
The rate at present for the purchase or sale of a service or asset.
Preferred Stock
A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with dividends that are paid out before those to common shareholders.
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