Ch. 13 The Weighted Average Cost Of Capital And Company Valuation Flashcards
0
Q
Weighted-average cost of capital
A
[d/v * (1-tc)r debt] + (e/v * R equity)
1
Q
Capital structure
A
The mix of long term debt and equity financing
2
Q
Free cash flow
A
Cash flow that is not required for investment in fixed assets or working capital and is therefore available to investors
