Capital components A. The average cost of a firm's financial capital when averaged across all of its outstanding debt and equity capital. Investment opportunity schedule B. This concept maintains that the firm's retained earnings should generate a return for the firm's shareholders. Opportunity cost principle C. A firm's shareholder wealth-maximizing combination of debt, and common and preferred stock. Breakpoint D. This term refers to the individual sources of the firm's financing, including its debt, preferred stock, retained earnings, and newly issued common equity. Target capital structure E. The minimum return that must be earned on a firm's investments to ensure that the firm's value does not decrease. Flotation costs F. The return required by providers of capital loaned to the firm. Marginal cost of capital G. A table or graph of a firm's potential investments listed in decreasing order of their internal rates of return. Cost of capital H. The costs associated with issuing new financial securities. Weighted average cost of capital I. The average cost of the next dollar of financial capital raised by a firm. Cost of debt J. The point along the firm's marginal cost of capital (MCC) curve or schedule at which the MCC increases