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When 14-year-old Tatiana's friends call her name, she responds with, "What?!" When her teacher calls her name, she responds by saying, "Yes, ma'am?" Tatiana's responses indicate her understanding of
Residual Income
A measure of net income that remains after subtracting a charge for the capital cost involved in generating that income.
Weighted Average Cost of Capital
A financial metric that calculates a firm's cost of capital, weighted by the proportion of equity and debt financing.
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