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Finance_11

Cost of Capital

QuestionAnswer
Required Rate of Return
Flotation Costs
The firm's policies regarding the sources of financing it plans to use and the particular mix in which they will be used. Financial Policy
A composite the individual costs of financing incurred by each capital source. Weighted Average Cost of Capital
Cost of Debt
Cost of Preferred Stock
Cost of Internal Equity
Cost of External Equity
The mix of long term sources of funds used by the firm. This is also called the firm's capitalization. Capital Structure
Created by: Wilkins188
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