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Cost of Capital
Refers to the opportunity cost of making a specific investment, representing the rate of return that could have been earned by putting the same money into a different investment with equal risk.
Short-Term Debt
Obligations or loans that are due to be paid back within a short period, typically one year or less.
Long-Term Debt
Borrowings and financial obligations lasting over one year, used to finance operations or acquisitions.
Capital Budgeting
The method by which a business analyzes prospective large-scale projects or investments.
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