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Which term refers to the concentration of salts in soil?
Debt-equity Ratio
A measure used to assess a company's financial leverage, calculated by dividing its total liabilities by its shareholder equity.
Weighted Average Cost of Capital
The rate that a company is expected to pay on average to all its security holders to finance its assets, weighting the cost of each source of capital (equity, debt, etc.) by its proportion in the capital structure.
Optimal Capital Structure
The ideal mix of debt and equity financing that minimizes a company's cost of capital and maximizes shareholder value.
Weighted Average Cost of Capital
A calculation of a firm's cost of capital that weights each category of capital proportionally, including equity and debt.
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