Examlex
Holding all other factors constant, a firm that is subject to a greater level of business risk should employ more financial leverage than an otherwise equivalent firm that is subject to a lesser level of business risk.
Stock Market Values
The overall value of shares traded within a stock market, representing the market's perception of the total worth of its listed companies.
Uncertainty
The degree to which the outcome of an event, choice, or investment is unknown.
Constant Growth DDM
The Dividend Discount Model assumes dividends grow at a constant rate indefinitely, used to estimate the value of a company's stock.
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.
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