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According to the Adapting to Change Box, One Uspide to Crowdfunding

question 295

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According to the Adapting to Change box, one uspide to crowdfunding is that potential future investors will be attracted to companies that already have large numbers of investors.


Definitions:

Debt Rating

An assessment of the creditworthiness of a debtor, usually in the form of a code or letter grade, provided by credit rating agencies.

Cost of Capital

The return rate that a company must earn on its investment projects to maintain its market value and satisfy its creditors and investors.

Market Value

The current value at which the market facilitates the sale or purchase of a service or asset.

WACC

Weighted Average Cost of Capital; a calculation used to assess the cost of a company's financing by averaging the costs of its equity and debt, weighted by their respective proportions in the company's capital structure.

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