Examlex
A diseconomy of scale is a concept that refers to a condition when the average cost per unit increases as the facility's size increases.
Market Risk Premium
The excess return that investors require from an investment in the stock market over a risk-free rate. This premium compensates investors for taking on the higher risk of investing in stocks.
Risk-Free Rate
The theoretical rate of return on investment with zero risk of financial loss, often represented by government bonds.
Expected Dividend
The dividend payment a shareholder anticipates receiving, based on the company's past dividend history or announcements.
Weighted Average Cost of Capital (WACC)
A calculation of a firm's cost of capital where each category of capital is proportionately weighted, used to assess the average rate a company is expected to pay to its security holders.
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