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What Is a Strategic Business Unit (SBU)

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What is a strategic business unit (SBU)?


Definitions:

Common Equity

The amount of capital that belongs to the common shareholders of a company, represented by common stock and retained earnings.

Stock Price

The cost of purchasing a single share of a particular company, which fluctuates based on demand and supply dynamics in the market.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital (debt, equity) is proportionately weighted.

Capital Component

Individual sources of funding that make up a company's capital structure, including debt and equity.

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