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Firm Value
The total worth of a company, determined by factors like its assets, earnings, and market perception.
Financial Leverage
Employing borrowed capital to enhance the potential profit from an investment, which magnifies both possible rewards and risks.
MM
MM, short for Modigliani and Miller, refers to a foundational theory in finance concerning the capital structure of companies and its impact on market value.
Financial Distress
A condition when a company cannot generate sufficient revenues or income, making it unable to meet its financial obligations.
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