the minimum rate of return or profit a company must earn before generating A. Cost of...

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the minimum rate of return or profit a company must earn before generating A. Cost of Equity value A percentage return that is required by capital providers as compensation for using their capital Pre-tax interest rate a company pays on its debts, such as loans, credit cards, or invoice financing Approximated by yeild-to-maturity or the risk free rate + the credit spread Compensation that the market demands in exchange for owning equity and bearing the risk associated with owning it Calculated using the Capital Asset Pricing Model (CAPM), which considers an investment's riskiness relative to the current market Can be approximated using the dividend discount model for firms that pay dividends Most common method for calculating cost of capital. It equally averages a company's debt and equity from all sources B. Weighted Average Cost of Capital (WACC) C. Cost of Capital D. Cost of debt the minimum rate of return or profit a company must earn before generating A. Cost of Equity value A percentage return that is required by capital providers as compensation for using their capital Pre-tax interest rate a company pays on its debts, such as loans, credit cards, or invoice financing Approximated by yeild-to-maturity or the risk free rate + the credit spread Compensation that the market demands in exchange for owning equity and bearing the risk associated with owning it Calculated using the Capital Asset Pricing Model (CAPM), which considers an investment's riskiness relative to the current market Can be approximated using the dividend discount model for firms that pay dividends Most common method for calculating cost of capital. It equally averages a company's debt and equity from all sources B. Weighted Average Cost of Capital (WACC) C. Cost of Capital D. Cost of debt