Examlex
Why,in finance,do we refer to using debt within a firm's capital structure as leverage?
Interest Rate
The percentage of a sum of money charged for its use, typically by a bank or financial institution to borrowers, or paid to savers and investors.
Future Value
The estimated value of a current asset or investment at a specified date in the future, taking into account factors like interest rates and compounding.
Diversification
The reduction of risk achieved by replacing a single risk with a large number of smaller, unrelated risks.
Present Value
Present Value is a financial concept that determines the current worth of a future sum of money or stream of cash flows, given a specific rate of return.
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