Why,in Finance,do We Refer to Using Debt Within a Firm's

question 93

Essay

Why,in finance,do we refer to using debt within a firm's capital structure as leverage?

Discriminate between different types of risk premiums (default, maturity, liquidity) and their impact on interest rates.

Recognize the theories explaining the term structure of interest rates (expectations theory, liquidity preference theory, market segmentation theory).

Calculate the impact of inflation on interest rates and understand inflation adjustment in interest rate calculations.

Understand how the financial markets facilitate the flow of money between the consumption and production sectors.

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