Examlex
Which of the following best describes numerical statistical variables?
Capital Structure
The mix of a company's long-term liabilities, specific short-term liabilities, common equity and preferred equity, which funds its overall operations and growth.
Interest Tax Shield
The reduction in taxable income for individuals or corporations achieved by deducting interest payments on borrowed funds.
M&M Proposition II
A theory proposing that the cost of equity increases as a company increases its leverage, due to the riskier equity stream.
Debt-Equity Ratio
A ratio assessing the comparative financing from equity and debt for a company’s assets.
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