Examlex
A borrower defaults on a loan when he stops making payments on the loan.
Cost of Equity
The return a company requires to decide if an investment meets capital return requirements; it represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.
Capital Structure
The composition of a company’s debt and equity used to finance its overall operations and growth.
Market Risk Premium
The additional return an investor requires from a market portfolio over the risk-free rate, compensating for the risk of the investment.
Financial Leverage
The use of borrowed funds to increase the potential return on an investment.
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