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How is social psychology defined?
M&M Proposition I
A theory stating, under certain conditions, that the value of a firm is unaffected by how it is financed, whether through debt or equity.
Interest Tax Shield
The reduction in income taxes that results from taking a deductible charge, such as interest on debt, reducing taxable income.
Tax
Compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.
Capital Structure
The mix of different forms of external funds and equity used by a firm to finance its overall operations and growth.
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