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To switch from Expanded or Condensed spacing back to regular spacing, click the Spacing box and then click ____.
Optimal Level
The most favorable point, amount, or degree of something for a particular situation, which maximizes efficiency or returns.
M&M Proposition II
Part of the Modigliani-Miller theorem on capital structure, stating that the cost of equity increases with higher levels of debt, as a consequence of the increased risk taken by equity holders.
Cost of Equity
The compensation that investors demand for bearing the risk of owning stock, usually reflected by earnings or dividend growth expectations.
Required Rate of Return
The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.
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