Examlex
Which of the following is NOT an explanation for the low rate of natural increase in China?
Financial Leverage
The use of borrowed funds to increase the potential return on investment.
MM Model
The MM Model, or Modigliani-Miller Theorem, is a finance theory that suggests market value of a company is determined by its earning power and risk of underlying assets, independent of its capital structure.
Cost Of Equity
The return a company requires to decide if an investment meets capital return requirements, often used in capital budgeting to evaluate projects.
Capital Structure
The composition of a company's liabilities and equity, describing how it finances its overall operations and growth.
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