Save
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Chapter 11 wacc

QuestionAnswer
Cost of Capital Firm's average cost of funds, Determining the amount of funds needed to be earned from investments
Required Rate of Return the return needed to be earned in order to cover the cost of financing
Capital Components Types of capital used by firm; debt, peferred stock, and common equity
After tax cost of debt rdT relevent cost of new debt
Cost of perferred stock rps rate of return required on perferred stock
Cost of retained Earnings THE rate of return required by stockholders on a firm's exsiting common stock
Cost of new equity re T he cost of external equity, based on cost the cost of retained earings but increased for floatation cost
Flotation cost the expenses incurred when selling new issues of securities
Target Capital Structure (optimal) the combination %s of debt, perferred stock, and common equity that maximizes the firm's stock
WACC weighted average of component cost s of debt, perferred stock, and common equity
Marginal Cost of Capital MCC the cost of obtaining another dollar of new capital
MCC the weighted average cost of the last dollar of new capital raised
MCC Schedule A graph that relates WACC to total amount of new capital
Breakpoint The Dollar value of new capital that can be raised before a increase in WACC occurs
Created by: 5000587
Popular Finance sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards