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A Patient with Type 1 DM Expresses Concern About Developing

question 21

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A patient with type 1 DM expresses concern about developing retinopathy due to a chronic disease. Which information does the nurse provide to give the patient the best reassurance?


Definitions:

Cost of Capital

A company's expense for acquiring funds and capital, calculated as a weighted average of debt and equity costs.

Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity; it indicates what proportion of equity and debt the company is using to finance its assets.

Levered Firm

A company that has debt in its capital structure, showing that it finances some of its operations through borrowing.

Static Theory of Capital Structure

A theory proposing that there is an optimal capital structure for a company, balancing the benefits and costs of debt versus equity financing to maximize value.

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