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Figure L-3
-The radiation curve is a plot of light intensity versus frequency for an incandescent source such as a glowing lamp filament. If the source of light were excited atoms in the gaseous phase, the radiation curve would look like
Financial Leverage
The use of borrowed money (debt) to amplify the potential return on investment.
Break-even EBIT
The level of earnings before interest and taxes (EBIT) at which a company neither makes a profit nor incurs a loss.
Target Capital Structure
Refers to the mix of debt, preferred stock, and common equity that a company aims to hold to fund its operations and maximize its value.
WACC
Weighted Average Cost of Capital - a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.
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