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Cost of Equity
The return a company requires to decide if an investment meets capital return requirements and is often used to assess the cost of funding.
Risk-Free Rate
The theoretical return of an investment with zero risk, often represented by the yield on government securities like U.S. Treasury bonds.
Beta
A metric for assessing the uncertainty, or inherent danger, of an individual security or collective investment compared to the market at large.
Common Stock
Represents equity ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.
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