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What Are the Information Costs Faced by Savers

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What are the information costs faced by savers?


Definitions:

Cost of Equity Capital

The return a company requires to decide if an investment meets capital return requirements and is typically used in the capital asset pricing model.

Price/Earnings Ratio

A valuation metric for a company that measures its current share price relative to its per-share earnings.

Growth Opportunities

Potential scenarios or plans that a company can undertake to increase its market share, revenues, or profitability.

Implied Share Price

The calculated value of a share based on future earnings expectations or business prospects.

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