Examlex
What is Strategy?
Financial Distress Cost
Expenses associated with a company struggling financially, including legal fees, restructuring costs, and impaired ability to conduct business.
Leverage
The use of borrowed capital or debt to increase the potential return of an investment.
Debt Financing
Raising capital through the sale of bonds, bills, or notes to individuals or institutions, which must be repaid over time with interest.
Interest Tax Shield
The reduction in income taxes that results from the deductibility of interest payments.
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