Examlex
Subtract the polynomials and simplify.
Financial Leverage
Rephrased: Utilizing debt to finance additional assets, with the aim of increasing returns to equity holders, while also increasing financial risk.
Interest Tax Shield
The decrease in what one owes in income taxes by removing the cost of debt interest from the taxable income figure.
Capital Structure Puzzle
The term refers to the challenge and debate over the optimal composition of a company's debt and equity financing to maximize its value.
Optimal Capital Structure
The best mix of debt, preferred stock, and common equity that maximizes a company’s stock price.
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