ARREARS Definition

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ARREARS is an unpaid overdue debt, or the state of being behind in payments, e.g. an account in arrears.

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EQUITY RISK PREMIUM is a rate of return in addition to a risk-free rate to compensate for investing in equity instruments because they have a higher degree of probable risk than risk-free instruments (a component of the cost of equity capital or equity discount rate).

FLOTATION COST is the percentage cost of issuing new common stock.

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