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Imagine that you are centering a multiview drawing. If the drawing area is 12" high and 20" wide, and the object being drawn is 8" high and 12" wide, how far should the left side of the drawing be from the left side of the drawing area?
Firm Value
The total value of a company, measured by its market capitalization plus debts, minority interest, and preferred shares, minus total cash and cash equivalents.
Cost of Equity
The return a company theoretically pays to its equity investors to compensate them for the risk they undertake by investing in the stock.
WACC
Weighted Average Cost of Capital. It represents the average rate that a company is expected to pay to finance its assets, weighted according to the proportion of equity and debt in its capital structure.
Free Cash Flow
The amount of cash generated by a business that is available for distribution among all the securities holders of an organization, including dividends, share repurchases, and debt repayments.
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