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Equity Capital
Funds raised by a company through the sale of common or preferred stock.
Cost of Capital
The necessary return rate on investments a firm must attain to keep its market price stable and appeal to investors.
Net Present Value
A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and the present value of cash outflows.
Discount Rate
The interest rate used to discount future cash flows to their present value, often used in the context of evaluating investment opportunities.
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