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

1. AT&T raises capital through debt and equity financing to fund its operations and expansion.
2. The company's stock performance can impact its cost of equity when calculating the Weighted Average Cost of Capital (WACC).
3. AT&T's debt levels and interest rates affect its cost of debt, which is a component in WACC calculations.
4. Understanding AT&T's capital structure helps in analyzing its financial health and investment potential.
5. 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?

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.