Examlex
Ivan Pavlov studied the reflexive flow of saliva in dogs. He used meat powder or other food to trigger the salivation. It was later observed that the salivation in the dog was triggered even before the food was placed in its mouth. In this experiment, ________ was the unconditioned stimulus.
MM Model
The Modigliani-Miller theorem, proposing that in a perfect market, the value of a firm is unaffected by how it is financed, whether through debt or equity.
Financial Leverage
The use of borrowed funds with a fixed cost to enhance the potential return on investment.
Bankruptcy Risk
The risk that a company will be unable to meet its financial obligations and thus may have to declare bankruptcy.
Operating Leverage
A measure of how sensitive a company's operating income is to a change in revenue, indicating the level of fixed versus variable costs.
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