Examlex
________ occurs when a supervisor earns less than his or her subordinates.
After-Tax Cost of Debt
The net cost of debt after accounting for the effects of taxes, reflecting the actual cost to a company.
Cost of Equity
The theoretical compensation paid by a company to its equity investors, or shareholders, for the risk involved in investing their capital.
Weighted Average Cost of Capital (WACC)
The average rate of return a company is expected to pay to all its security holders to finance its assets.
WACC
Weighted Average Cost of Capital; a formula used to calculate a business's cost of capital, where every type of capital is weighted according to its proportion.
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