Examlex
One element of a firm's environment is
Cost of Debt
The effective rate that a company pays on its current debt, included in capital structure calculations to assess overall cost of capital.
Cost of Equity
The return that investors expect for investing in a company's equity, representing the compensation for the risk taken.
WACC
The calculation used by firms to evaluate the cost of their financing and investments, taking into account the weighted proportions of each source of capital, including equity and debt.
WACC
Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.
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