Examlex
The primary drawback to the direct changeover approach is that if the new system fails or needs modification, users may be without services while the system's bugs are worked out.
Debt Ratio
The portion of assets financed by debt, showing the extent to which a company relies on borrowed funds for its operations.
MM Model
Refers to the Modigliani-Miller theorem, a foundational concept in corporate finance that states that under certain market conditions, the value of a firm is unaffected by how it is financed.
Arbitrage
The simultaneous buying and selling of the same commodity or security in two different markets at different prices, thus pocketing a risk-free return.
Capital Structure
The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.
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