Match the Following

question 67

Essay

Match the following.You may use a response once,more than once,or not at all.

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Definitions:

Capital Restructuring

The process of reorganizing a company's capital structure, including changing the mix between debt and equity financing.

Debt Financing

Raising capital through the sale of bonds, bills, or notes to individuals or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay principal and interest on the debt.

Financial Risk

The possibility of losing money or the uncertainty in achieving the expected returns mainly due to market movements, interest rates, or credit failure.

ROE

Return on Equity is an indicator of a company's financial performance, indicating the amount of profit made from the shareholders' investments.