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Insulators act to
Optimal Capital Structure
The best combination of debt and equity financing that maximizes a company's value while minimizing its cost of capital.
Debt Levels
The total amount of borrowing, represented as a ratio of debt to equity or a total dollar amount.
Excessive Risk
Engaging in financial activities that have a high chance of resulting in significant loss.
Operating Leverage
A measure of how revenue growth translates into growth in operating income, indicating the degree to which a firm can increase profits by increasing sales.
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