Re:Hertz orders 100k Teslas
by jjeaff on Tuesday October 26, 2021 @04:15AM
(#28997710)
Because market cap is just the crazy value investors have attributed to the company. It doesn't mean the company is any bigger or smaller.
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But it means their cost of capital can be lower - for example, by issuing new shares to capture some of that high market cap. Then they can expand much easier than a competitor who cannot get such good rates for new share issuance.