Finance (Speedy Study Guides)

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Speedy Publishing. Finance (Speedy Study Guides)

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Here’s a quick review of the terms you need to know:

There are a few basic finance terms that every entrepreneur should fully understand. They represent the core of understanding how business development works across all stages in the life of a venture, so it’s important you understand their meaning.

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This is the true cost of securing the funds that the business uses to pay for its asset base. Some funds are from debt (less risky to the creditors, so it has a lower cost of capital to the firm), and some funds come from equity (more risky to the investors, so these have a higher cost of capital). The combination of lower-cost debt capital with higher-cost equity capital produces the next item in this list.

Internal rate of return (IRR)

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