Examlex
Which of the following terms best represents voluntary actions that violate significant organizational norms and, in doing so, threatens the well-being of the organization or its members?
Cost of Equity
The compensation that investors demand for bearing the risk of owning stock, usually reflected by earnings or dividend growth expectations.
Required Rate of Return
The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.
M&M Proposition II
Part of the Modigliani-Miller theorem stating that a company's cost of equity increases as its level of debt increases, due to the higher risk of default.
Cost of Equity
The return that investors expect for investing in a company's equity, reflecting the risk of owning equity in the company.
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