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Steroid hormones
Financial Leverage
The use of borrowed money (debt) to amplify the potential return on investment.
Break-even EBIT
The level of earnings before interest and taxes (EBIT) at which a company neither makes a profit nor incurs a loss.
Target Capital Structure
Refers to the mix of debt, preferred stock, and common equity that a company aims to hold to fund its operations and maximize its value.
WACC
Weighted Average Cost of Capital - a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.
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