Intrl:rr|Ir concepts Term Capital components Investment opportunity:r schedule IZIIpportunit'g.r oust principle Brea kpoint Target capital structure...
Hey guys! I was wondering if anyone could help me out with these basic concept finance questions? Thanks I really appreciate it!
1. Intrl:n:lulr.'l:r:rr§|Ir concepts Term Capital components Investment opportunity:rschedule IZIIpportunit'g.r oust principleBrea kpoint Target capital structure Flotation costs Marginal oost of capital Cost of capital Weighted average oust of capital Cost of debt Dl l:ll:ll:ll:ll:ll:ll:ll:ll:l Description The average oost of the next dollar of financial capital raised bya firm. The point along the firm's marginal cost of capital {MEG} curveor schedule at which the MCE increases. The costs associated with issuing new financial securities.The oost associated with a firm's borrowed financial capital. The average rate paid by a firm to secure the outstandingfinancial capital used to acquire the firm's assets. This ooncept maintains that the firm's retained earnings shouldgenerate a return for the firm's share holders. A firm's shareholder wealth-maximizing combination of debt.and oommon and preferred stock. A table or graph of a firm's potential invesb'nents ranked fromthe highest internal rate of return to the lowest. The minimum return that must be earned on a firm'sinvestments to ensure that the firm's value does not decrease. The elements in a firm's capital structure.
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