Hmgt 655 - Study guides, Class notes & Summaries

Capital - Money, or the equivalent of money, that is loaned to, or invested in, a business Debt - Fixed Obligation or liability of the business that must be paid back, with interest, over a specified period of time Equity - Ownership in the business that does not require immediate repayment, but requires a return on the capital invested Cost of Debt - Interest expense the borrower pays the lender Cost of Equity - Portion of cash flow the sponsor of a deal allocates to the investor WACC de...