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Cost Of Debt
The effective rate that a company pays on its total debt, indicating the average return that lenders demand for borrowing their capital.
Capital Structure
Capital structure refers to the mix of equity, debt, and other financing sources a company uses to fund its operations and growth.
Optimal Capital Structure
The best combination of debt, preferred, and equity financing that maximizes a company’s stock price by minimizing its cost of capital.
Capital Budget
The budget allocated for spending on major long-term investments or projects of a company.
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