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The objective theory of contracts asks whether a reasonable person,viewing the circumstances,would conclude that the parties intended to be legally bound.
Dividends Per Share
The amount of dividends paid out to shareholders per share of the company’s stock.
Financial Leverage
The use of borrowed funds in an attempt to increase the return on equity, involving higher risk but potentially higher returns as well.
Free Cash Flow
The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
Capital Structure
The mixture of debt and equity financing a company uses to fund its operations and grow its business.
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