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Cost of Equity
The rate of return that a company is expected to pay to its shareholders to compensate them for the risk of investing in the equity of the company.
Leverage
The use of various financial instruments or borrowed capital, like debt, to increase the potential return of an investment.
Debt-Equity Ratio
The ratio of a firm's total liabilities to its shareholders' equity, used to assess financial leverage.
Financial Risk
The possibility of losing money on an investment or business venture, often associated with the uncertainty of returns.
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