Examlex
A hedge that involves the use of a futures contract on an instrument that is different from the instrument being hedged is called a cross hedge.
M&M Proposition II
A firm’s cost of equity capital is a positive linear function of its capital structure.
Cost of Capital
The cost of funds used for financing a business, typically considered as the weighted average of the costs of equity and debt financing.
Tax Rate
The amount of tax a person or company must pay, expressed as a percentage of income.
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