Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
Weighted average cost of capital — the blend of the cost of debt and the cost of equity, weighted by how much of each the company uses.
The formal discount rate for a DCF, which most investors reasonably simplify into a required return by business type. Running the model at three plausible rates says more than deriving one precisely.
Whether growth is funded at returns above the cost of capital and converted into cash.
Earnings rising every year while capital earns 8% against a 12% cost is value destruction with a nice chart.
Government borrowing as a share of GDP.
A wider deficit means more government borrowing, which pushes up bond yields and competes with private borrowers for the same money. It reaches share prices through the cost of capital.