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According to rational expectations,
Capital Structure
The combination of borrowing and ownership investments utilized by a company to finance its activities and expansion.
WACC
A method known as the Weighted Average Cost of Capital (WACC) is used to calculate a corporation's cost of capital, with every capital category assigned a proportional weight.
Historic Costs
The original monetary value of an asset or transaction, without accounting for inflation, depreciation, or appreciation, used as a basis for the financial accounting of assets.
Book Values
The value of an asset as recorded in the company's books or financial statements, often differing from its market value.
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