Examlex
Advantages of CATI include:
Cost of Equity
The return a company requires to decide if an investment meets its capital return criteria, essentially what it compensates investors.
Weighted Average
A calculation that takes into account the varying degrees of importance of the numbers in a data set by multiplying each value by a predetermined weight before averaging.
Equity Investors
Individuals or entities that invest capital in a business in exchange for ownership shares, exposing them to both the potential profits and risks of the entity.
Cost of Debt
The effective rate that a company pays on its current debt, often factored into more complex calculations to understand financial health.
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