Examlex
Overeating tends to be encouraged by all of the following EXCEPT for
Financial Leverage
The use of borrowed funds with the aim to increase the returns on equity by financing projects with debt rather than equity.
EBIT
Earnings Before Interest and Taxes, a measure of a company's profitability excluding interest and income tax expenses.
Capital Structure
Capital structure refers to the mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is considered when financing its overall operations and growth.
Bankruptcy Risk
Bankruptcy risk refers to the likelihood that a company will be unable to meet its debt obligations and may be forced into bankruptcy.
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