Examlex
Which of the following best explains the meaning of the 80/20 rule?
After-Tax Cost of Debt
The net cost to a company for borrowing funds, calculated by subtracting the tax benefits of interest expenses from the total interest paid.
Cost of Equity
The Cost of Equity is the return a company requires to decide if an investment meets capital return requirements and is often used in financial analysis and valuing companies.
Weighted Average Cost of Capital (WACC)
A computation of an enterprise's cost of capital, with each capital category assigned a proportional weight.
Weighted Average Cost of Capital (WACC)
A measure of a firm's cost of capital in which each category of capital is proportionately weighted.
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