Examlex
Companies cannot achieve differentiation by differentiating their channels, as this is not the purpose of a distribution channel.
ROE
Return On Equity represents a financial performance metric that is obtained by dividing a company's net income by its shareholders' equity, demonstrating the company's effectiveness in using investor funds to grow earnings.
EPS
Earnings Per Share, a key indicator of a company's profitability, calculated by dividing the company's net income by its total number of outstanding shares.
DFL
Degree of Financial Leverage, a ratio measuring the sensitivity of a company's earnings per share to fluctuations in its operating income, due to changes in its capital structure.
Optimal Capital Structure
The most favorable blend of debt and equity financing that minimizes a company's cost of capital while maximizing its market value.
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