Examlex
A recall test is more rigorous than a recognition test.
Bond-Yield-Plus-Risk-Premium
A method of estimating the cost of equity by adding a risk premium to the observed yield of a company’s long-term debt.
WACC
An assessment of a firm's cost of capital, where each category of capital is proportionally weighted to calculate the average cost.
Marginal Costs
Marginal costs refer to the change in total cost that arises when the quantity produced is incremented by one unit.
Target Capital Structure
Target capital structure is the proportional combination of debt, equity, and other financing sources a company aims to maintain.
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