Glossary_Corporate_Finance_Foundations.pdf

GLOSSARY Corporate Finance Foundations With Jim Stice and Kay Stice Use these terms and definitions below to understand concepts taught in the course. Transcript Search: note that you can search for terms directly within the course. To search video text, switch to the Transcripts tab, then press C...

GLOSSARY Corporate Finance Foundations With Jim Stice and Kay Stice Use these terms and definitions below to understand concepts taught in the course. Transcript Search: note that you can search for terms directly within the course. To search video text, switch to the Transcripts tab, then press Cmd/Ctrl + F on your keyboard to run a search within the active transcript. Term Definition beta A measure of the sensitivity of the rate of return of an investment to the performance of the overall market; a measure of the risk that cannot be eliminated by diversification capital asset pricing Method for calculating value of assets model (CAPM) equity risk premium Rate of return required for investment in an endeavor over and above the risk-free rate initial public offering Inaugural opening of the sale of shares to all investors (IPO) risk-free rate Return expected or needed for an absolutely certain investment weighted average Overall cost of a mix of financing methods cost of capital (WACC) LinkedIn Learning and Lynda.com are registered trademarks of LinkedIn Corporation. All rights reserved, 2019.