Examlex
Explain operations management role in business.
WACC
The Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. It represents the minimum return that a company must earn on its existing asset base to satisfy its creditors, owners, and other providers of capital.
Component Cost
The cost associated with each separate element (debt, equity, etc.) that comprises the overall cost of capital for a firm.
Noncallable Bond
A type of bond that cannot be redeemed by the issuer before its maturity date, thus offering investors protection against early repayment risks.
Annual Coupon
The yearly interest payment made to bondholders, expressed as a percentage of the bond's face value.
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