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Capital
Refers to the financial resources that businesses use to fund their operations and growth.
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.
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