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Explain the Concept of Top Management Team TMT and What

question 60

Essay

Explain the concept of top management team TMT and what dynamics influence its composition.


Definitions:

Equity Financing

A method of raising capital through the sale of shares in a company, providing investors ownership interests.

Debt Financing

The method of raising capital through the sale of bonds, notes, or loans, which must be repaid along with interest.

Marginal Cost

The cost of producing one additional unit of a product or service.

Optimal Capital Structure

The most favorable mix of debt and equity financing that minimizes a company's overall cost of capital while maximizing its stock price.

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