Examlex
Key Terms Instructions: Please define the following key terms. Show Who? What? Where? When? Why Important?
Edmund Cartwright
Coupon Rate
The annual interest payment on a bond, denoted as a percentage of its face value.
After-Tax Cost of Debt
The interest expense on debt adjusted for taxes, reflecting the actual cost to the company.
Marginal Tax Rate
The rate at which additional income is taxed, reflecting the proportion of each additional dollar of income that goes to taxes.
Weighted Average Cost of Capital
The average rate of return a company is expected to pay its security holders, weighted by the proportion of each security in the total capital structure.
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