Examlex
When debt is used to finance the purchase of assets,the term or time span of the debt should always be shorter than the lifespan of the assets.
Cost Of Capital
The rate of return that a business must achieve to generate value for its investors, essentially the cost of raising funds through debt or equity.
Dividend Growth Model
A method for determining the value of a stock by using predicted dividends and discounting them back to their present value.
Cost Of Equity
The return that equity investors require on their investment in the firm.
Systematic Risk
The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.
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