Examlex
Debt financing affects neither the operating risk nor the business risk of the firm.
Effective Rate
Refers to the real rate of interest earned or paid on an investment, loan, or other financial product, adjusted for the effect of compounding over a given period.
Return Required
The minimum expected rate of return on an investment necessary for an investor to consider it worthwhile.
Interest-Bearing Note
A debt instrument that pays interest to the holder, typically issued at face value and redeemed at maturity for the same amount plus accrued interest.
Times Interest Earned Ratio
A financial metric that measures a company's ability to meet its debt obligations by comparing its interest expenses to its earnings before interest and taxes.
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