Kroger

Definition

Kroger is a large American retail company that operates supermarkets and multi-department stores. It is one of the largest grocery chains in the United States by revenue and number of locations.

5 Must Know Facts For Your Next Test

1. Kroger often raises capital through debt and equity financing to fund its expansion and operations.
2. The company's cost of debt can impact its Weighted Average Cost of Capital (WACC).
3. Equity financing for Kroger might include issuing common stock, which affects its WACC calculation.
4. Kroger's capital structure, including the mix of debt and equity, is crucial when calculating WACC.
5. Understanding how Kroger manages its finances helps in analyzing its market performance and investment potential.

Review Questions

• How does Kroger typically raise capital?
• Why is Kroger’s cost of debt important in calculating WACC?
• What role does equity financing play in Kroger's capital structure?

Related terms

Weighted Average Cost of Capital (WACC): The average rate of return a company is expected to pay to all its security holders to finance its assets.

Equity Financing: The process of raising capital through the sale of shares in an enterprise.

Cost of Debt: The effective rate that a company pays on its borrowed funds from financial institutions and other sources.