Examlex
The short-term decisions of financial managers are comprised of:
Cost of Equity
The return that investors require for investing in a company's equity, representing the compensation for taking on equity risk.
Capital Structure
The specific blend of equity and debt that a company employs to fund its general activities and expansion.
Market Risk Premium
Refers to the extra expected return that investors demand for choosing to invest in the stock market over risk-free securities.
Levered Firm
A company that employs debt in its capital structure.
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