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Leverage
The use of borrowed funds to increase the potential return of an investment or project.
Cost of Equity
The rate of return a company must offer investors to compensate for the risk of investing in its stock.
Liquidation
Liquidation is the process of winding up a company's operations and selling its assets to pay off debts, ultimately leading to the dissolution of the company.
Business Risk
The possibility that a company will have lower than anticipated profits or experience a loss rather than taking a profit.
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