uses market values to measure the proportion of each capital

reflects the expected average future cost of capital over the Long - run

a statistical measure of the relationship between any two series of number.

to the firm is the same as the cost of an equivalent fully subscribed issue of additional common stockto the firm is the same as the cost of an equivalent fully subscribed issue of additional common stock

uses accounting values from firms finance statement of each type of capital

easily estimated by using the betas of individual asset

process of identification, analysis, and acceptance or mitigation of risk in investment

issuer expenses such as legal, accounting, and printing.

measures the directional relationship between the returns on assets.

are issued underpriced, meaning it is sold at a discount relative to its current market price

assumes that the value of a share of stock equals the present value of all future dividends assumed to grow at a constant rate

the total costs of issuing and selling a security

compensation earned by investment bankers for selling the security (commission) coits associated with underwriting

is the return required on the stock by investor, in the marketplace.

uses the firm's desired capital structure

have a higher claim to dividends or asset distribution

a model that describes the relationship between expected return and risks

combining different investment in one portfolio

measure of volability (pag flactuate) no returns

are funds actually received ty the firm from the save of a security

return on the market portfolio of all traded securities

existing weights uses actual or current structure

represents the firm’s cost of financing and is the minimum rate of return that a project must earn.

a weighted average of the returns on the individual assets from which it is formed.

identifying risks, analysing them and making investment decisions based on either accepting, or mitigating them