Capital Structure Flashcards

1
Q

Market Capitalization is equal to:

A

number of common shares outstanding multiplied by fair market value per share

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2
Q

Capital Asset Pricing Model Equation

A

Cost of RE=Risk-free rate + ((Beta(market return - risk free rate))

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3
Q

risk free rate AKA:

A

US Treasury bond %

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4
Q
A
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