Examlex
IBM just paid a dividend of $3.5 and expects these dividends to grow at 9% a year.The price of IBM is $100 per share.What is IBM's cost of equity capital?
WACC
Weighted Average Cost of Capital; a calculation that reflects the cost of a company's financing (debt and equity) weighted by the proportion of each financing source in the overall capital structure.
Tax Shields
Deductions and credits available to taxpayers that lower the total tax liability by reducing taxable income.
Equity Risk
The risk of loss arising from fluctuations in the values of equity investments.
Operating Activities
Business actions that relate to the company's day-to-day functions, contributing to the generation of revenue.
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