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-For the concentric circles shown, is tangent to the inner circle and a chord of the outer circle. If the radius of the inside circle is 5 and of the outer circle is 13, find AB.
M&M Proposition II
A theory by Modigliani and Miller that suggests the cost of equity is a linear function of the company's debt/equity ratio, under a no-tax environment.
Financial Risk
The possibility of losing money on an investment or business venture due to various financial factors.
Return on Assets
An indicator of how profitable a company is relative to its total assets, calculated as net income divided by total assets.
M&M Proposition II
A theory proposing that the value of a firm is unaffected by its capital structure, assuming no taxes and that investment returns are required to increase with leverage.
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