chapter 14 corporate finance
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Last updated 1:49 AM on 11/4/25
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4 Terms
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cost of equity
the return that equity investors require on their investment in the firm
2
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cost of debt
the return that lenders require on the firms debt
3
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weighted average cost of capital (WACC)
the weighted average cost of equity and the after tax cost of debt
4
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pure play approach
the use of a WACC that is unique to a particular project based on companies in similar lines of business
Note 
Flashcards (33)