Examlex
If the expected dividend growth rate is zero, then the cost of external equity capital raised by issuing new common stock (re) is equal to the cost of equity capital from retaining earnings (rs) divided by one minus the percentage flotation cost required to sell the new stock, (1 − F).If the expected growth rate is not zero, then the cost of external equity must be found using a different formula.
Equilibrium Quantity
The amount of products or services available and sought after at the market's balance price.
Supply Curve
A graphical representation that shows the relationship between the price of a good and the quantity of the good that producers are willing to supply.
Buyer's Value
The maximum amount that a buyer is willing to pay for a good or service, reflecting the personal value the buyer attributes to the product.
Seller's Cost
The total expenses incurred by a seller in producing and selling a product, including manufacturing, labor, and material costs.
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