Examlex
Explain why the weighted average cost of capital is invariant to the firm's debt-equity ratio in the absence of corporate taxes.
Price-Weighted Index
A stock market index in which each company's influence on the index's movement is proportional to its stock price.
Bond Price Index
An index that measures the price changes of a specific set of bonds, reflecting overall movements in the bond market.
Pretax Rate of Return
The rate of return on an investment before taxes have been considered or deducted.
After-Tax Return
The net profit or loss of an investment after all taxes have been deducted.
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