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The value of a levered firm,given permanent debt level D,is:
Value of levered firm = value of unlevered firm + (TC)× (D).This assumes zero costs of financial distress.
Fiedler's Contingency Theory
A leadership theory proposing that effective leadership is contingent upon the leader's style of interacting with their subordinates and the degree of control and influence in a situation.
Relationship-Oriented
This term refers to a leadership style or approach that emphasizes building strong interpersonal relationships and focusing on the well-being and needs of team members.
Leader Punishment Behaviour
The leader’s use of reprimands or unfavorable task assignments and the active withholding of rewards.
Social-Emotional
Relating to the complex interplay of emotional and social aspects of one's experience and behavior.
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