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Cost Of Capital
The rate of return a company must earn on its investment to maintain its market value and attract funds. It represents the cost of a company to secure funds, whether through debt or equity.
Capital Component
One of three sources of capital: debt, preferred stock, or equity.
Required By Investors
Refers to the expectations or conditions that investors demand before committing capital to an investment.
Capital Structure
The combination of borrowing and ownership investments utilized by a company to finance its activities and expansion.
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