Examlex
Prejudice is
M&M Proposition II
A theory in corporate finance stating that a firm's cost of equity increases with its level of debt, considering there are no taxes, transaction costs, or bankruptcy costs.
Financial Distress
Financial Distress occurs when an entity faces difficulties in meeting its financial obligations, often leading to insolvency or bankruptcy.
Leverage
Utilizing borrowed funds or debt to enhance the possible returns from an investment.
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