AT&T
Definition
AT&T is a major American multinational telecommunications company. It provides a wide range of services, including wireless communications, digital entertainment, and business communications solutions.
5 Must Know Facts For Your Next Test
- AT&T raises capital through debt and equity financing to fund its operations and expansion.
- The company's stock performance can impact its cost of equity when calculating the Weighted Average Cost of Capital (WACC).
- AT&T's debt levels and interest rates affect its cost of debt, which is a component in WACC calculations.
- Understanding AT&T's capital structure helps in analyzing its financial health and investment potential.
- Changes in regulatory policies can influence AT&T's capital raising strategies and overall financial strategy.
Review Questions
- What are the two primary methods AT&T uses to raise capital?
- How does AT&T's stock performance impact its cost of equity?
- In what way do interest rates affect AT&T's cost of debt?
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Related terms
Cost of Equity: The return required by shareholders for investing in a company's equity.
Cost of Debt: The effective rate that a company pays on its borrowed funds.
Capital Structure: The mix of different forms of external funds used to finance a business.
