Examlex
A group is defined as
M&M Proposition II
This financial theory, originating from Modigliani and Miller, states that a firm's cost of equity increases as the firm increases its level of debt financing, holding everything else constant.
Capital Structure
The mix of different forms of financial securities used by a firm to finance its operations, typically consisting of debt and equity.
Levered Firm
A company that has debt in its capital structure, implying that it has taken on borrowing to finance its operations or growth.
Unlevered Firm
A business or company that operates without any debt financing, meaning it does not have any borrowings in its capital structure.
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