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Last updated 12:32 PM on 6/29/26
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4 Terms
1
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Debt and Equity
Companies raise capital in two main forms:
2
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market system
In a free economy, capital, like other items, is allocated through a _____ ______, where funds are transferred and prices are established.
3
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interest rate
It is the price that lenders receive, and borrowers pay for debt capital.
4
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cost of equity
Equity investors expect to receive dividends and capital gains, the sum of which represents the?