Examlex
Match each term with the correct statement below.
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Financial Leverage
The use of borrowed money to increase the potential return of an investment, which also increases the risk of loss.
M&M Proposition
The Modigliani-Miller Proposition argues that in an ideal market, the value of a firm is unaffected by how it is financed, whether through debt or equity.
Capital Structure Weights
The proportions of a company's financing derived from different sources, such as debt and equity, used in calculating the cost of capital.
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