Match the following concepts: Relates the risk-return tradeoffs of individual securities to market returns. optimal capital structure Determines the value of a share of stock by taking the present value of the expected future stream of dividends. marginal cost of capita The distribution expense involved in selling securities to the public. capital asset pricing model The cost of alternative sources of financing to the firm. weighted average cost of capital Features the best possible mix of debt, preferred stock, retained earnings and new common stock. cost of capital The result of multiplying the cost of each item in the capital structure by its corresponding representation in the overall capital structure and summing the results. flotation costs Appears on the balance sheet under long-term liabilities and equity. dividend valuation model The cost of the most recent dollars of funds raised. financial capital