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Now that Janet is 65 and has retired, she has settled into a more assertive role at home and with her friends. On the other hand, her husband Brad, who is also retired, is just as likely to cook dinner and wash the dishes as he is to change the oil on the car. Janet and Brad are experiencing:
Capital Structure
The composition of a company's liabilities and shareholders' equity, detailing how a firm finances its overall operations and growth by using different sources of funds.
Cost of Equity
The rate of return that a company needs to generate in order to compensate its equity investors, taking into account the risk associated with the investment.
Market Risk Premium
Market risk premium is the expected return on an investment over the risk-free rate, representing the compensation investors require for taking on higher risk.
Dividends
Funds distributed by a company to its shareholders, typically sourced from the firm's earnings.
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