Examlex
Use the FOIL method to multiply the binomials. Assume any variable exponents represent whole numbers.
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After-Tax Cost
The net cost of an investment after the reduction of any taxes that are applicable to it, reflecting the actual cost to the investor.
WACC
The Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.
Retained Earnings
The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.
CAPM Approach
The Capital Asset Pricing Model, a formula used to determine the expected return of an investment based on its risk relative to the market.
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