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Cost of Equity
The return a firm theoretically pays to its equity investors to compensate for the risk they undertake by investing in the company.
Cost of Debt Financing
The total expenses a company incurs in order to borrow money, including interest payments, transaction fees, and any other associated costs.
Business Risk
The exposure to factors that can lead to a reduction in the value of an investment or in the revenues of a business.
Systematic Risk
A risk that influences a large number of assets. Also called market risk.
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