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Cost of Equity
The return a company requires to decide if an investment meets capital return requirements, often estimated using the Capital Asset Pricing Model (CAPM).
Pre-Tax Cost of Debt
The rate of return that a company pays on its debt, before taking into account tax deductions.
Face Value
The nominal value printed on a bond or security which indicates its worth at maturity but does not necessarily reflect its market value.
Weighted Average Cost of Capital (WACC)
The average rate of return a company is expected to pay its shareholders and debt holders, weighted according to the proportion of equity and debt in the company's capital structure.
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